Northeast Dairy Magazine | Q4 2021 by NortheastDairyMag

Milestones Celebrating Longevity in the Dairy Industry

SOMETHING TO CONSIDER

Laws, Taxes, Regs. Matter

Fourth Quarter 2021

SCHOLARSHIPS

NDSA AWARDS $14,000

HUMAN RESOURCES

Cybersecurity Risks

DAIRY CONVENTION

Highlights of 2021

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contents Fourth Quarter 2021 • Volume 4, No. 4

FEATURES

FRONT DESK 04 PRESIDENT’S MESSAGE, NDFA

Celebrating Milestones, Moving Forward

BY DANIEL LAUSCH

PRESIDENT’S MESSAGE, NDSA

2021 Hasn’t Been Easy

BY BILL ELLIOTT

EXECUTIVE VP MESSAGE

2021 Events Were a Success

BY OZZIE ORSILLO

LEGISLATIVE REPORT

Pots Are Beginning to Boil

ECONOMIC OUTLOOK

Inflation Is Taking its Toll

BY GARY LATTA

MILESTONES

Celebrating Longevity in the Dairy Industry

Laws, Taxes, Regulations Do Matter

BY GARY LATTA

TAXATION BY UNACCOUNTABLE STRANGERS

BY JOHN MCCLAUGHRY

2 • Northeast Dairy Foods Association, Inc.

• H.S. Crocker

• Land O’Lakes

• GEA Mechanical

• Rutter’s • Harrisburg Dairies

• Forbes Chocolate

• Foss North America

• Farm Credit East

• Flavorchem Corporation

• The Dake Farmily/ Stewart’s Shop Ice Cream

MEMBER NEWS 42

Editor’s Note on Photography Images used in this issue of Northeast Dairy were submitted by various sources and some were taken pre-pandemic, which is why many of the subjects are not wearing masks or other protective gear in the photos.

• KROHNE

Equipment U.S., Inc.

19 SOMETHING TO CONSIDER

• HP Hood, LLC

NDSA Awards $14,000 in Scholarships

Back in the Swing of Things: NDSA Golf/Clambake Returns

Golf/Clambake Photo Collage

Annual Dairy Convention

2021 Convention Photo Collage

Member & Industry News

New Members

contents Fourth Quarter 2021 • Volume 4, No. 4

NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT

BUSINESS OPERATIONS MANAGER

PRESIDENT

TREASURER

James “Ozzie” Orsillo

Daniel Lausch Lactalis American Group

VICE PRESIDENT

Kevin Ellis Cayuga Milk Ingredients

Leanne Ziemba

Randi Muzumdar HP Hood LLC

SECRETARY

Ryan Elliott Byrne Dairy

NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. PRESIDENT

Bill Elliott Northeast Great Dane

VICE PRESIDENT

Melissa Fryer Alfa Laval

TREASURER

Ryan Osterhout KCO Resource Management

SECRETARY

Bruce Alling Double H Plastics, Inc.

NORTHEAST DAIRY MAGAZINE TEAM EXECUTIVE EDITOR

SALES

PUBLISHER/DIRECTOR OF SALES

Anne DeSantis anned@nedairymedia.com

James “Ozzie” Orsillo oo@nedairyfoods.org Bill Brod billbrod@nedairymedia.com

Leanne’s Kitchen

Electrical Vehicle Charging Coming to Stewart’s

EDITOR

Caroline K. Reff creff@nedairymedia.com CONTENT DIRECTOR

TOOLS OF THE TRADE 58

COMBATTING CYBERSECURITY RISKS

Ad Index

BY PAUL PANUSKI

Steve Guglielmo steveg@nedairymedia.com CREATIVE DIRECTOR

Robin Barnes

GRAPHIC DESIGN

Robin Barnes Renate Wood

Tim Hudson thudson@nedairymedia.com

Hannah Gray hannahg@nedairymedia.com Lesli Mitchell lmitchell@nedairymedia.com CONTRIBUTORS

Paul Banuski and John McClaughry PRODUCED BY

Northeast Dairy Media

Editorial correspondence should be directed to editor@nedairymedia.com. Advertising correspondence and materials should be sent to billbrod@nedairymedia.com. POSTMASTER: Send address changes to lz@nedairyfoods.org.

COVER DESIGN

STAY CONNECTED

www.nedairyfoods.org www.neastda.org 427 S. MAIN ST, NORTH SYRACUSE, N.Y. 13212 315-452-MILK (6455)

Karley Harmon

An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations. In all other respects, neither the association nor the producer of the publication, Northeast Dairy Media, is responsible for the contents thereof or the opinions of the contributors. The entire contents are © 2021 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned. Visit Northeast Dairy Foods Association online at nedairyfoods.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at oo@nedairyfoods.org.

NED Magazine | Fourth Quarter 2021 • 3

Front Desk

Celebrating Milestones and Setting New Ones for Moving Forward BY DANIEL LAUSCH President, Northeast Dairy Foods Association, Inc.

e all have anniversaries and milestones in both our business and personal lives to remember. Certain dates will stick with us forever, like the start date of your very first full-time job. We even build things into our routine business plans that reinforce those anniversary dates, like an annual reset of your vacation PTO days based on your employment start date. One hundred years is a golden business target milestone for any company. It has lasted into the third or fourth generation, which most companies rarely get to witness and celebrate. Before a company gets to 100 years, there are important milestones that need to be achieved like 25, 50 or 75 years. You will get to read about some of those company achievements further into this issue. Our four organizations – the Northeast Dairy Foods Association, the Northeast Dairy Suppliers Association, the New York State Cheese Manufacturers Association and the Pennsylvania Association of Milk Dealers – have reached a new milestone of their own in 2021 by holding one joint meeting at this year’s annual dairy convention in Celoron, New York, allowing for a 4 • Northeast Dairy Foods Association, Inc.

As you read through this issue of Northeast Dairy magazine, you can appreciate the time and effort involved in these companies that are celebrating their own anniversaries or milestones. A heartfelt congratulations goes out to all.

more effective venue for the suppliers to mix and mingle with more potential customers. The speakers were able to address a larger group of dairy industry folks on a broader range of subjects, including state government. Our one-year anniversary meeting is already scheduled for Schenectady, New York, in 2022. Make plans now within your company’s

budget to send and include more employees to attend our meeting, as well as the annual clam bake, as a way of training and rewarding the younger and newer employees. Again, my congratulations to all members celebrating milestones this year. A heartfelt congratulations goes out to all. Enjoy the read.

Front Desk

2021 Hasn’t Been Easy, but We Still Have Plenty to Celebrate BY BILL ELLIOTT President, Northeast Dairy Supplier Association, Inc.

t seems like we have a lot to celebrate in this issue of Northeast Dairy magazine, and it’s about time for some good news after the year-and-a-half of tough and unprecedented times we’ve been living through. First of all, I’d like to extend my congratulations to those who are highlighted in this issue for milestone anniversaries. Wow! Some of these companies amaze me with their longevity over more than a century. Some of our members have survived the Civil War (e.g., HP Hood), the Great Depression and World War II. I think we can all learn a lesson from them, as they’ve lived through tough times like so many of us are experiencing today but have also seen the good times. These “milestone members” have adapted, innovated and made what I’m sure were tough decisions to keep their businesses going and growing for so many years. We thank all of these companies celebrating anniversary years for supporting the dairy industry in some way and being an example of the tenacity that it takes to keep going strong. Next, I’d like to congratulate the 11 winners of the Northeast Dairy Suppliers Association’s Bruce W. Krupke Memorial Scholarship. Please

take a minute and read through the profiles of these students on page 42. They are amazingly accomplished at such a young age, and we are proud to be able to help them reach their goals. This is no ordinary crowd; these students are studying neuroscience, biology and medicine – both animal and human; industrial engineering, nutrition and food science, economics and political science, marketing, robotics and more. At first, this seems like a wide and varied list, but all the fields of study I’ve just named somehow connect to the dairy industry. And, the accomplishments don’t stop there. We have one winner who’s also a cheesemonger and another who served on the tribal council of his Native American community. Another is working to find solutions for a more sustainable world, and we also have a couple of Eagle Scouts. In a time when Generation Z gets a bad rap, I think this is just some amazing stuff that shows that these students are already head and shoulders above the rest as they work to become tomorrow’s leaders. Thanks to all who support the efforts that go into raising our scholarship funds each year. We couldn’t do it without you, and I know Bruce Krupke would be proud that these students are receiving some

scholarship funds toward their education in his name. I’d also like to thank all who attended our convention. As the seasons are changing, it already seems like a long time ago, but I hope all of you walked away with some new ideas and leads, more people to network with and also had time for a bit of fun! I especially enjoyed our speed networking event – sort of like speed dating, you could say – which gave our supplier members a chance to get in front of our producer members in a fun and interesting way. This event got great feedback, and you could feel the energy in the room as our suppliers had six minutes to meet some of our producers and at least give them the “elevator speech” about what they have to offer. It was a big hit, and I would think we’ll try it again in the future. Save the dates now for next year’s annual convention, Aug. 17-19, 2022, at the Rivers Casino in Schenectady, New York. Back to business. We have, of course, continued to struggle in a world dominated by the pandemic. As you know, trucking is my business, and there’s no disputing that a lack of truck drivers – whether in dairy or any other industry – is impacting all of us, from

NED Magazine | Fourth Quarter 2021 • 5

Front Desk Save the dates now for next year’s

Annual Northeast Dairy Convention, Aug. 17-19, 2022, at the Rivers Casino in Schenectady, New York.

6 • Northeast Dairy Foods Association, Inc.

the inability to get goods and services to the added costs that ultimately get passed down to our customers and consumers. I wish I had an answer, but it seems that it’s something that we are going to continue to face for a while. There are some solutions in the works, but nothing is going to cure this problem overnight. Companies like Walmart and Old Dominion are giving drivers HUGE bonuses to sign on – which pulls them away from our own member businesses. It’s impacting everyone, everywhere, as supplies of just about everything are scarce and prices are high. There is some good news though. I read where more than 250,000 women truck drivers have been hired across every industry recently. According to the Department of Labor, there are 3.6 million truck drivers and almost 8% of them are women. That might not sound like a huge number, but it is progress in what has clearly been a male dominated field for such a long time. Man or woman – it doesn’t matter. We just need qualified drivers. We’re going to keep paying attention to issues related to trucking and transportation in future issues of Northeast Dairy because clearly there needs to be more innovative solutions fast! Again, thanks for your support of the Northeast Dairy Suppliers Association. We hope you have a happy and safe end to 2021, as we look for better, healthier times ahead in 2022.

Front Desk

2021 Events Were a Success, and 2022 is Poised to Be Even Better BY OZZIE ORSILLO Executive Vice President, Northeast Dairy Foods Association, Inc.

ello members! As we wrap up 2021, we reflect on how wonderful this year was. Coming into this year, we were all full of uncertainty, but, through the efforts of so many in the medical community, our lives climbed back toward

normal levels. Here at the Northeast Dairy Foods and Suppliers associations, we were able to host our in-person events once again and what a tremendous success they were: our Spring Tour of Byrne Dairy, followed by our new Dairy Blender, then, in July, our Bruce W. Krupke Memorial Golf Outing and Clambake, all to be capped off by our annual convention at Chautauqua Lake, New York – an event full of new programs and political presence that you will read more about in our convention update article to follow. Each of these events were nicely attended resulting in a fantastic year for your associations. Thank you all for your support and attendance! On the topic of government relations, this year your Northeast Dairy Foods Association made great advances to improve our channels of communications with political figures across our eight-state region. Your staff hosted video calls introducing our associations, discussing topics important to our members and offering our associations and our members as a resource pool should firsthand industry insight be needed. This has been a successful initiative, and one we will continue in an effort to build and maintain long-lasting relationships with our governmental partners and agencies. Now, on to 2022. We have another bang-up year of events planned! January 2022: Applications will open for our Bruce W. Krupke Memorial Scholarship program. Scholarships are available for undergraduate college students and trade school students. These scholarships are available to Northeast Dairy Suppliers

members, Northeast Dairy Foods members and their immediate families. Go to www.nedairyfoods.org to apply. Also, see the profiles of the 2021 winners on page 42 of this issue. May 2022: Spring Tour and Dairy Blender. A perfect time of the year to put your snowmobiles away, brush off the snow and enjoy the beauty of spring! Here, Northeast Dairy Supplier members will hear directly from Northeast Dairy Foods members on what they look for in a vendor relationships. In most cases, changing vendors can create a massive disruption to a manufacturing business, so choosing the right partner is generally a major challenge for processors. This is a great opportunity to hear the very latest in procurement trends and manufacturing needs. This is a must-attend event for all NDSA members. That same afternoon, we will host our Dairy Blender. This is a casual event where Northeast Dairy Supplier members can network with NDFA, PAMD and NYSCMA members in a fun and casual setting. Details on these events have not been finalized at the time of this this printing, but please watch our website and future issues of our magazine for more information. July 13, 2022: Northeast Dairy Foods Association and the Northeast Dairy Suppliers associations will host our Bruce W. Krupke Memorial Golf Outing and Clambake. Come to see up to 1,000 industry colleagues for a round of golf, great food, refreshments, games, prizes and, of course, networking! The Spinning Wheel Event Center in N. Syracuse, New York, is again where we will gather, so come and enjoy a great day with your dairy industry family! August 17-19, 2022: Our annual Northeast Dairy Convention will again be hosted by the Northeast Dairy Foods Association, the Northeast Dairy Suppliers Association, the New York State Cheese Manufacturers Association and the Pennsylvania Association of Milk Dealers. Here, 250-plus business leaders in the dairy

NED Magazine | Fourth Quarter 2021 • 7

Front Desk 2022 CALENDAR OF DAIRY EVENTS

LET’S CELEBRATE! JANUARY 2022

JAN. 2: National Cream Puff Day JAN. 5: National Whipped Cream Day JAN. 11: National Milk Day JAN. 15: National Strawberry Ice Cream Day JAN. 20: National Cheese Lover’s Day JAN. 30: National Hot Chocolate Day

FEBRUARY 2022 FEB. 5: National Frozen Yogurt Day FEB. 14: Valentine’s Day FEB. 17: National Café Au Lait Day

MARCH 2022 NATIONAL NUTRITION MONTH NATIONAL AGRICULTURE MONTH MARCH 17: St. Patrick’s Day MARCH 22: National/World Agriculture Day MARCH 23: National Chip and Dip Day (Sources: Digitalfoodworks.com; foodimentary.com; holidayinsights.com) 8 • Northeast Dairy Foods Association, Inc.

industry and dairy suppliers industry, as well as political guests, will convene for three days of business sessions, activities and networking. Our Speed Networking program will be back with improvements to last year’s program, as well. So that our readers are aware, following our conference this year, we reviewed your survey comments, and your ideas were fantastic! Thank you. Additionally, we held a video conference with our five most senior NDSA members and our five newest NDSA members to get their input on how to improve Speed Networking. We surveyed the board of directors from NDFA, PAMD and NYSCMA for their input, too. These groups came up with some great ideas with the most significant being to allow suppliers and processors the opportunity to request who they wish to meet with prior to our conference. Great idea, right? It all comes down to planning, so, to make this work, we need your help. We will publish a networking request form well before the event. Once it is published, we will ask our attendees to complete this form by a specified date, so we can go about the task of coordinating your requests. After our cutoff, it will be first come first served, assuming there is room left to accommodate others. Prior to sending out this request form, we will provide our members ample notice to watch for it, so not to worry, there will be no surprises. For our 2022 conference, we ask members of PAMD, NYSCMA and NDFA to allow multiple representatives from your companies to attend our conference and Speed Networking event, so that more departments of your businesses can be represented across the variety of NDSA supplier members. The goal is to make Speed Networking as productive as it can be. There will be other enhancements as well, including extended visit times, more visits and visits held at vendor tables, so NDSA members will need to reserve an exhibit table to participate in Speed Networking. Our 2022 conference venue has been confirmed. Nestled on the banks of the Mohawk River, The Landing Hotel at Rivers Casino in Schenectady, New York, opened in 2017. The hotel is fresh and modern, and the event center fits our conference needs to a T. The casino and the hotel are tastefully separated, so you would never know you are at a casino other than from a glance through the main hallway. There are lots of things to do on property, within walking distance and within a short drive, as the area has much to offer. So, with that, we look forward to another fantastic year serving the needs of our members and breaking all previous attendance records with your help. On behalf of the staff and board of directors here at the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association, we thank you for your support and participation. We wish you all a wonderful holiday season.

Legislative+RegulationsReport

LEGISLATIVE UPDATE

The Pots Are Beginning To Boil

ince the start of summer, most legislatures across the Northeast have remained in recess, but that’s not to say there hasn’t been activity and issues percolating that might gain traction by the end of the year or early in 2022. As the year winds down, and we turn the page to the new year, it should be expected that some of these issues could really start getting some hype in state legislatures as potential issues to tackle during the upcoming legislative sessions. Of course, there certainly has been some drama over the last few months, as well, which has changed the political dynamics of the region. After months of near-daily criticism over sexual harassment allegations, creating a hostile work environment, the state’s reporting on COVID-19 nursing home deaths, and profiting off of a book deal from the pandemic, New York Gov. Andrew Cuomo announced his resignation and left office at the end of August. This paved the way for Lt. Gov. Kathy Hochul to become New York’s new governor. You may be wondering what significance does this have for the dairy industry? Well, this could bode very well for the dairy and agriculture sector as a whole. Hochul comes from the Buffalo area, completed her undergraduate degree from Syracuse University and served in Congress representing New York’s 26th congressional district for two years prior to being tapped as Cuomo’s running mate in 2018. While some politicians claim to have “Upstate” ties, roots, experiences and what have you, Hochul most certainly does. She understands the needs and

concerns of Upstate, at least better than any other governor in recent history, and with agriculture and dairy being leading economic segments of the state’s economy, the industry is in a prime position for seeking changes and expressing concerns. In Maine, as you may recall, the state was looking to pass Extended Producer Responsibility legislation earlier in the year. The Northeast Dairy Foods Association and Northeast Dairy Suppliers Association collaborated very closely with other industry partners, including the Maine Grocers and Food Producers Association, opposing the proposed bills and lobbying state legislators heavily expressing the industry’s concerns. Unfortunately, in mid-July, the legislature passed LD 1541 ‘An Act To Support and Improve Municipal Recycling Programs and Save Taxpayer Money’ and Gov. Janet Mills signed the bill into law. Despite continued reservations from many organizations, Maine is the first in the nation to put an EPR program for packaging into law. The law states that the Maine Department of Environmental Protection will initiate rulemaking “On or before December 31, 2023.” A stewardship organization will be contracted through an RFP process, and it can be expected that the program will start in 2024. As the process continues, the Northeast Dairy Foods and Suppliers associations will continue to work with industry partners to highlight the concerns of the dairy industry and work with the state to find common ground. This issue has also been percolating in New York and New Jersey for the last couple of years and will definitely be surfacing in these states and heading to the floors for votes in the very near future. Expect EPR and similar packaging and recycled content bills to be a priority for other states in 2022 and beyond, as the dominos have begun to fall across the Northeast on this topic. Also on the environmentally friendly and sustainability topic, New York will be considering new initiatives aimed at increasing the state’s reliance on renewable energy and combating global warming, including awarding contracts to two companies to build separate transmission lines to bring clean energy to New York City. Subsequently, as the state legislature has been on recess since June,

NED Magazine | Fourth Quarter 2021 • 9

Legislative+RegulationsReport there has been no movement on the Climate and Community Investment Act (S4264-A/A6967). As a refresher, this legislation would create several duplicative programs, addressing responsibilities that are currently assigned to other state agencies, regulating emissions already subject to state and federal oversight and regulation, and imposing potentially billions of dollars in fees on a wide range of businesses and residents alike. Even as many business groups and other associations along with The Northeast Dairy Foods Association and The Northeast Dairy Suppliers Association are opposing this bill as it is currently written, it can be expected to gain steam this upcoming legislative session. Another issue that many businesses of all sizes and types across the country are currently experiencing is difficulties with staffing. In fact, it has been so bad for some businesses, particularly in the service industries, that they have had to close, modify operating hours or limit services available. This, in turn, often means longer customer wait due to employee shortages. This issue is not new, per se, to the dairy industry, as processors, manufacturers and distributors have battled with finding qualified applicants for positions. The issue has simply been exacerbated because of the pandemic and the unemployment benefits, along with state and federal assistance, being provided to those out of work. The issue of finding staff and employees has impacted businesses across the dairy spectrum, and the Northeast Dairy Foods and Supplier associations have been pressuring state labor departments to enforce the requirements of actively seeking work in order to receive Unemployment Insurance benefits. What that means is that the associations are asking departments of labor to ensure that those who are collecting unemployment benefits from their states be required to prove they are actively seeking employment opportunities and applying for jobs, not just sitting at home collecting a check from the state. During the pandemic, states have let up and become a little more lax when it comes to enforcing this requirement, citing that we are in the middle of an unprecedented pandemic, which has turned the economy and workforce upside down. That may have been the case early on in the pandemic. However, the economy and businesses have learned to adjust since then. If we want to get our economy back up and running at full speed, it will require a fully capable and dedicated workforce. Another topic to keep an eye on in the final quarter of 2021 is the New York State farm labor overtime threshold limit. As you may recall, the Farm Labor Wage Board met at the very end of 2020 to review the overtime threshold limit of 60 hours. When the bill was passed during 2019, it required the wage board to review this specific measure and make a ruling 10 • Northeast Dairy Foods Association, Inc.

by the end of 2020 as to if it should be lowered to 40 hours per week. In last year’s review, the board cited that because of the pandemic and financial issues farmers and producers were facing for the first nine months of the pandemic, it was not the appropriate time to adjust the overtime threshold. The wage board did state, at that time, that a second review of this topic would be conducted in 2021 and a decision would be made by the completion of the year to maintain the 60 hours or reduce it to 40. Preliminary conversations have indicated that the board is not inclined to reduce the threshold. However, nothing should be taken for granted and pressure from the industry along with state legislators needs to be applied to ensure this does not happen. Should the wage board lower the overtime threshold to 40 hours, it will increase costs and add additional administrative burdens to farmers and producers of all sizes in New York State. In turn, this will increase costs that changes the price of products all the way down the line down to the consumer, ultimately raising the prices. As you can see, there is a common thread here across the industry and the region. In 2022, we should expect to see state legislatures taking more action and proposing more bills on increasing environmental regulations, changes to recycled content and packaging and other sustainability initiatives. The Northeast Dairy Foods Association and The Northeast Dairy Suppliers Association have routinely emphasized that the dairy industry is supportive of being environmentally conscious, pro-sustainability and pro-recycling. However, the fact is, state’s need to be understanding of businesses capabilities, both physically and financially, in order for these programs to be successful and withstanding. The New England states along with New York and New Jersey – not to mention the other 42 states in the nation – are most likely also going to be taking a hard look at the issues surrounding the labor markets and unemployment benefits. The world is nearing the two-year mark of the pandemic, and, at this point, there is certainly some sort of job out there for you if you are in need of one. These topics have been being discussed for some time already and will continue to gain momentum as the legislative sessions begin to ramp up. With new leadership in some states and with 2022 being an election year for some governors and across most statehouses, as well as members of Congress, expect to see less distractions and potentially some major policy decisions being made to appease the bases. The pots have been starting to boil… and things are about to get hotter. This legislative report was compiled by the staff of the Northeast Dairy Foods and Suppliers associations.

EconomicOutlook

ECONOMIC OUTLOOK

Inflation Is Taking Its Toll on the Dairy Industry BY GARY LATTA

.S. inflation has hit its highest level in 13 years and is rising each month. The consumer price index rose 5.4% for all items, according to the U.S. Bureau of Labor Statistics in its most recent mid-October report. The consumer price index measures the average change over time for prices paid for goods and services. Energy and food contributed to most of this rise, climbing 24.8% and 4.6%, respectively. The annual growth in food inflation is now the highest since late 2011. Within the food categories, meat, eggs, poultry and fish are contributing the most, increasing 10.5%, as the index for beef rose 17.6% over the year. The smallest increase was the dairy and related products index, which rose just 0.6% over the last 12 months.

The CPI energy index surged 24.8% in the last 12 months. Over the past 12 months, gas prices are up 42.1% and fuel oil is up 42.6%. Gas at the pump is up over a dollar from this time last year. Electricity is up 5.2%. Interestingly, new vehicles are up 8.7%, while used vehicles are up 24.8% as measured over the past 12 months. At least five factors are driving prices higher: disorder in the global supply chain, labor shortages in many areas, food and energy prices, higher housing costs and what many see as a poorly planned evolution from fossil fuels to green energy alternatives. Exacerbating the situation are ongoing supply chain bottlenecks and congestion both in the U.S. and globally. The backlogs and jams of shipping containers at key U.S. ports, especially

California, are a major cause of shortages for many goods. There simply is not enough personnel at the ports to unload inbound ships and not enough drivers to deliver goods to their destinations across the country. The Biden administration has been working to expand the hours of operation at the ports to speed deliveries, even mentioning the option of bringing in the National Guard to assist. Recently, there have been reports that certain food packaging materials are getting scarce and that labor shortages are becoming a concern to some manufacturers and distributors within the food industry. John Catsimatidis, chairman and CEO of Gristedes Foods, a grocery chain in Manhattan, made the prediction that food prices will rise 10% in the next two months. Catsimatidis believes food prices will “…rise tremendously” in the

NED Magazine | Fourth Quarter 2021 • 11

EconomicOutlook coming weeks, as many large companies like Coca-Cola and Nabisco will begin raising prices to get ahead of higher costs. CEO’s want to be ahead of the curve, and the way they’re going to do it is they’re dropping all promotions and low-moving items.” We know the agriculture and food industry are heavily impacted by rising fuel prices. Farm, plant and trucking costs are feeling the bite of escalating energy costs that will be reflected in the price of food. AAA reported in mid-October that the national average cost of regular gas has reached $3.357 a gallon. And, it is $3.569 a gallon for diesel based on the national average. These figures are rising a few cents every day and vary by state and region. Gas in New Jersey jumped a dime in one day recently and made big headlines. In the Northeast, gas prices are lowest in New Hampshire and Massachusetts at $3.270 to $3.317 a gallon. Northeast gas is the highest in New York and Pennsylvania at $3.488 and $3.527, respectively. At the time of this writing, diesel in New York is $3.671 and in Pennsylvania $3.927. No doubt, by the time you read this, gas and diesel prices will have inched much higher. Republican leaders in the New York State Senate have asked Gov. Kathy Hochul to suspend the state’s tax on fuel, as prices soar at the pump, and many experts forecast home heating bills this winter to be up significantly. Since farms, processing and manufacturing plants are large users of gas, diesel and fuel oil, higher costs will have to be accounted for in their operations. A wakeup call came in October from the U.S. Energy and Information Administration in its Winter Fuels Outlook report. The organization expects a colder winter based on forecasts from the National Oceanic and Atmospheric Administration and says retail prices for energy, even now, are at or near multiyear 12 • Northeast Dairy Foods Association, Inc.

highs. According to this outlook, “Even when we vary weather expectations, we expect the increase in energy prices as the United States returns to economic growth to mean higher residential energy bills this winter.” The report forecasts that households will experience the following: natural gas users will spend 30% to 50% more than they spent last winter on average, electricity users will spend 6% to 15% more, propane users will spend 54% to 94% more, and heating oil households will spend 43% to 59% more. The NOAA points out that these figures can adjust either way throughout the season depending on the region and how cold it is. Looking at USDA’s October Milk

Production report, we begin to see a monthly trend of fewer cow numbers and a slowdown in milk production growth. This would be the fourth consecutive month of declining cow numbers in the top 24 states with August up 0.7% and September up 0.4%. Monthly production per cow was 4 pounds lower in September 2021 than in September 2020. The number of milk cows on farms in the 24 major states was 8.93 million, 48,000 more head than September 2020, but 22,000 head less than the previous month of August 2021. The USDA compared quarterly milk production for all states from July through September 2020 versus 2021. Here are the changes in the Northeast:

EconomicOutlook

STATE PERCENT CHANGE FROM 2020 Connecticut -0.9 Maine -2 Massachusetts -2 New Hampshire -1.8 New Jersey -12.5 New York +1.7 Pennsylvania -1.5 Rhode Island -10.7 Vermont +0.2 United States +0.9 In its October Livestock, Dairy, and Poultry Outlook, the USDA points to a substantial culling of milk cows in recent months. In addition to culling milk cows, climatic conditions and higher costs of production have all contributed to the slowdown in the rate of production growth. The weekly Dairy Market News reported that 40% of the nation’s milk cows are presently located in a drought area. NOAA claims the summer of 2021 was the hottest on record for the 48 contiguous states. Dairy NED Magazine | Fourth Quarter 2021 • 13

percent higher than August 2020. Milk cows averaged 9.480 million head in August, a decline of 19,000 from July. Substantial culling of milk cows has contributed to the decline in milk cow numbers. August was the third month that milk cows declined from the previous month. In recent weeks, federally inspected dairy cow slaughter has continued to be higher than corresponding weeks of 2020. Yearover-year growth in milk per cow decelerated in June and July; in August, average milk per cow was 1,987 pounds, 1 pound lower than August 2020.

EconomicOutlook U.S. milk production Million pounds 660 640 620 600 580 560

Jan

Feb

Mar

Apr

May

2015-19 average

Jun

Jul 2020

Aug

Sep

Oct

Nov

Dec

2021

Source: USDA, Economic Research Service calculations using data from USDA, National Agricultural Statistics Service.

Climatic conditions and high costs of production have likely contributed to the recent deceleration in milk production growth. According to the U.S. drought monitor, the inventory of milk cows in areas of drought was estimated to be 63 percent for the weeks of June 15 and June 22. The percentage of milk cows in drought areas has declined since then to 40 percent for the week of October 5. More than 60 percent of alfalfa hay areas have been in drought since the middle of June. According to the National Oceanic and Atmospheric Administration, the summer of 2021 was the hottest on record for the 48 contiguous States. In the report of August 20, DMN reported that some areas of the Pacific Northwest had been unable to recoup heat-related drops in output. In the August 27 report, DMN reported that heat and humidity in the Upper Midwest were having negative effects on milk production. 8 Livestock, Dairy, and Poultry Outlook: October 2021, LDP-M-328, October 18, 2021 USDA, Economic Research Service

14 • Northeast Dairy Foods Association, Inc.

EconomicOutlook

Milk production usually responds to milk prices and input prices with a lag of several months. Feed prices have been relatively high compared to milk prices in recent months. The milk-feed ratio fell for 9 months, from 2.58 in November 2020 to 1.50 in August 2021. Milk-feed ratio All-milk price/ feed value 2.8 2.6 2.4 2.2 2 1.8 1.6 1.4 1.2

2020 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 Feb Mar Apr May Jun Jul Aug Jan Jan

Source: USDA, National Agricultural Statistics Service.

Labor and fuel costs have also been relatively high. In the semi-annual Farm Labor report published on May 26, USDA National Agricultural Service (NASS) reported that the average hourly rate for hired Market also reported heat-re- week the recent milk 2021 prices have the having favorable to farm News workers for thethat reference in April wasreduced up 6 percent from very the April 2020conditions reference week. Wages likely have remained relatively high since ratio then. Although U.S. Bureau of Labor lated stress drops inhave milk output milk-feed ratio. The milk-feed is the exportthe considerable amounts of prodStatistics doesin not wage of statistics workers, reports weeklyour wage statistics not been recouped somereport areas ofweekly the number pounds of for 16%farm protein mixed ituct, and, therefore, surplus to other for sectors that compete agriculture for labor. the months May around through weekly Pacific Northwest and Upper with Midwest. dairy feed equal inFor value to 15pound of from countries theSeptember, globe. The U.S. wages for production inreflect the transportation and Council warehousing sector Some observers feel high beef and pricesnonsupervisory are whole milk.employees It is designed to the Dairy Export announced in averaged 7.0 percent above May through September 2020. For the construction sector, the year-overcontributing to the higher milk cow cull price of milk relative to the price of feed. October that dairy exports have shown 2 fuel prices been year increase forfarm the sameMilk 5 months was 4.7 percent. rate. Theaverage report pointed out that production exceeds the needs Recent their seventh straighthave monthalso of growth relatively high. For the first half of 2021, the NASS index representing prices that farmers paid for fuels input costs have been steadily rising, of domestic consumption in the United in 2021 to a variety of countries, despite was below the first half of 2020; however, in July it was 3.1 above July 2020, and in August it was 7.7 and the high cost of feed in relation to States. Fortunately, we are blessed by port congestion. Gains are seen in nearly above August 2020. While year-over-year farm milk production growth has decelerated in recent months, year-over-year cheese production growth has grown. In June, cheese production was about the same as June 2020, dairyand industry faces enough challenges, insurance coverbutThe in July August it was above the previous year by 3.0 and 4.4 percent, respectively. This age shouldn’t be one of them. ASAand can dry helpskim makemilk sureproducts. you’re In June, butter production was 7.5 contrasts with production of butter percent higher than at June 2020, Julybudget. and August, it was below the previous year by 1.5 percent covered correctly a price thatbut fitsinyour and 1.7 percent, respectively. June production of dry skim milk products 3 was 7.6 percent above June 2020, but July and August production quantities were lower than the previous year by 8.1 percent and • Life insurance • Property Equipment 15.7 percent, & respectively. • Workers’ comp • Environmental liability • Risk analysis • Group health plans • Loss control • Dental coverage Phone: 877-466-9089 • And much more... • Vision insurance

agri-servicesagency.com July and August statistics are preliminary for both the transportation and warehousing sector and the construction sector. Give us a call today to learn how Agri-Services 3 Dry skim milk products include NDM, skim milk powder, and dry skim milk for animal use. Agency can help protect your operation. 9 Livestock, Dairy, and Poultry Outlook: October 2021, LDP-M-328, October 18, 2021 USDA, Economic Research Service 2

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NED Magazine | Fourth Quarter 2021 • 15

EconomicOutlook

every product category, and export volume climbed by 13% on a milk solids equivalent basis. Currently, a few things are working in favor of the U.S. Latin American and European countries have not recovered from COVID as rapidly and have not shown growth in milk production that compares with the U.S. European milk production has been a stagnant + 0.3%. Even though U.S. production is starting to slow down, our product prices are currently competitive in the international marketplace. The USDA has posted international dairy product export price averages in recent issues of the Dairy Market News and Livestock, Dairy, 16 • Northeast Dairy Foods Association, Inc.

and Poultry Outlook. Comparing these prevailing international prices to USDA’s dairy product wholesale prices and CME prices, it is clear the U.S. holds an advantage, despite port bottlenecks. Mexico and South American countries have been importing considerable amounts of U.S. cheese, milk powders and whey, thus avoiding much of the port congestion snarling overseas shipments. In a recent Hoard’s Dairyman webcast, USDEC senior vice president of global cheese marketing said global cheese trade is at an all-time high, up 10% compared to last year and on pace for one of the best years ever. Domestic cheese production is not meeting demand

in many regions of the international market, and this provides an opening for U.S. dairy products. The U.S. is now the world’s largest single supplier of cheese and positioned well to capitalize on increasing market share. Along with Mexico and South America, other top destinations for U.S. dairy products are South Korea and Japan. While China is a huge opportunity, retaliatory tariffs and other issues currently dampen our opportunities there. The USDEC and others remain confident that dairy exports to China will only grow in the future. Evolving variables and uncertainties around the globe are making it increasingly difficult to make milk price projections. Even the USDA has been bouncing around in recent months making numerous tweaks both up and down in its estimates for 2021 and 2022. Most prognosticators admit that the integrity of any dairy forecast made today has a short shelf life. The most recent USDA reports show dairy product prices climbing for cheese and nonfat dry milk but down slightly for butter and dry whey. Weekly product prices at the Chicago Mercantile Exchange have been trending higher than USDA prices in its National Dairy Sales Report. Chicago Mercantile Exchange spot prices for 40 pound blocks and 500 pound barrels of Cheddar cheese averaged $1.8065 and $1.7855 per pound, respectively. Chicago Mercantile Exchange prices for butter, nonfat dry milk and dry whey averaged $1.6990, $1.4300 and $0.5915 per pound, respectively. Considering recent reductions in cow numbers, high feed costs and trends toward lower per cow yields, the USDA has reduced its 2021 milk production forecast by 0.8 billion pounds to 227.0 billion pounds from its previous month’s forecast. The 2021 export forecast was increased slightly based on higher expected sales of butterfat products. On a skim solids basis, export forecasts were

EconomicOutlook

lowered slightly based on an expected lower sales of skim milk and whey products. Domestic sales were lowered due to higher anticipated product prices and weaker consumer demand. Based on lower expected milk production and product price trends, the USDA’s wholesale price forecasts have been raised for most dairy products in

2021. Price forecasts for cheese, nonfat dry milk and dry whey are $1.680 (+4 cents), $1.245 (+2 cents) and 56 cents (+1 cent) per pound, respectively. The 2021 wholesale price forecast for butter is $1.685 per pound, a reduction of 5 cents from last month. With the USDA’s higher forecast for the wholesale price for cheese, the

Class III milk price projection for 2021 is now $17.05 per hundredweight (cwt.), 40 cents higher than last month’s forecast. The Class IV milk price projection is $15.70 per cwt, 15 cents higher than their previous month’s forecast. The all-milk price forecast for 2021 is raised to $18.45 per cwt, an increase of 30 cents from last month’s forecast. CONTINUED ON NEXT PAGE ►

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EconomicOutlook

Considering evolving trends, the USDA has significantly raised its 2022 milk price forecast from last month. The number of milk cows is expected to keep declining into the first quarter of 2022. Thus, the annual forecast for cow numbers has been reduced to 9.450 million head, 30,000 head below the last month’s forecast. The milk per cow estimate is 24,305 pounds, 25 pounds below last month’s forecast. The forecast for 2022 milk production has been reduced to 229.7 billion pounds, 0.9 billion pounds less than last month’s forecast but 2.7 billion pounds higher than expected for 2021. Projected exports for 2022 have been raised on a milkfat basis due to expected higher butter exports. Projected 2022 exports on a skim-solids basis remain unchanged from the previous month’s forecast. Dairy imports are expected 18 • Northeast Dairy Foods Association, Inc.

to remain unchanged. Domestic use is projected to be lower than the previous month’s forecast, as wholesale prices will be higher, and milk production is expected to be lower. Domestic use is expected to be lower in 2022 and has been reduced from last month’s forecast. With lower anticipated milk production, ending stock forecasts for 2022 have been reduced. Taking variables into account, the USDA raised its dairy product price estimates for 2022. Wholesale price forecasts for cheese, butter, nonfat dry milk and dry whey are all raised from last month’s forecast to $1.715 (+6 cents), $1.755 (+2.5 cents), $1.380 (+11 cents), and 51 cents (+1 cent) per pound, respectively. With the higher projected wholesale prices for cheese and whey, the Class III milk price forecast for 2022 has been raised to $17.10 per cwt

and is an increase of 65 cents from last month’s forecast. Butter and nonfat dry milk price forecasts have also been raised. The Class IV milk price projection for 2022 is now $17.15 per cwt. and is $1.10 higher than last month’s forecast. Based on these estimates, the all-milk price forecast for 2022 is now $19.20 per cwt., an increase of $0.80 over last month’s projection. Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.

Something to Consider

Laws, Taxes and Regulations Do Matter BY GARY LATTA

t was sad learn in late August that at least 89 organic dairy farms from Maine to New York would be losing their contracts with Danone by August 2022. Danone said that it valued its relationship with its producers and was not making the decision lightly. Danone specifically mentioned the Northeast and its growing challenges with operations and transportation. The company further stated that it would be supporting new partners that better align with its manufacturing footprint, and that the costs of trucking milk to its plant was the sole reason for the decision. Fortunately, these organic farms have been given hope recently when Stonyfield Organic agreed to buy milk from some of the organic dairy producers that were dropped. Politicians point to Danone’s announcement as a cost-saving strategy to increase the company’s profits. That is probably true. Companies are pretty much free to operate wherever they choose in the U.S., and, yes, many times, it is to optimize profitability. The fact is businesses exist to generate profits for owners and investors whether they be privately or publicly held. The concept that a business is in brutal competition with its rivals and that it is free to relocate to another

state is foreign to many politicians. State legislators and bureaucrats often fail to realize that bids for sales contracts to supply products to national grocery and institutional buyers are often won or lost on fractions of a penny. More times than not, the bidding is against competitors in other states or regions. Legislators’ jaws drop and eyes glaze over with astonishment – as if it was the first-time they were hearing this. The cost of doing business, state taxes, regulations and legislation very much matter. The Tax Foundation is a DC-based leading independent research and analysis organization that looks at numerous variables to gauge an individual state’s overall business climate. Its annual State Business Tax Climate Index provides business leaders, governmental policymakers and taxpayers with a comparison by state. Using over 120 tax variables, all 50 states are ranked. Of the ten lowest ranked states in the 2021 summary, four (almost half) are in the Northeast. New Jersey came in 50th, New York 48th, Connecticut 47th and Vermont is 43rd. In case you are wondering, California is ranked 49th. Looking at this report, these rankings have been consistent over the past eight years for these four Northeast states.

It comes as no surprise that gas taxes are high in the Northeast. New Jersey is ranked fourth with a state gas tax of 50.7 cents a gallon, and New York is ninth at 46.9 cents a gallon. Pennsylvania is ranked third with a whopping 58.7 cents a gallon tax. California is ranked first at 66.98 cents a gallon. Transportation permits and tolls are also high cost in the Northeast. According to the American Transportation Research Institute’s 2020 Analysis of the Operational Costs of Trucking, regional costs varied dramatically across U.S. regions. This analysis say it is no surprise the highest costs are coming from the Northeast, reporting marginal costs per mile were substantially higher here. “With the highest cost centers being tolls and repair and maintenance. With major traffic congestion, mediocre infrastructure, as well as the most concentrated tolling systems in the country, trucking costs in the northeast remain consistently high,” according to ATRI. ATRI examined the average cost per mile by U.S. region. The Midwest was $1.697, Southeast $1.564, Southwest $1.550, West $1.619 and the Northeast the highest at $1.844. Of the motor carrier costs measured by ATRI, it appears to be fuel cost, tolls and

NED Magazine | Fourth Quarter 2021 • 19

Something to Consider driver-based benefits that are pushing the Northeast higher in comparison to other regions. Escalating toll charges and permit fees are common in the Northeast, especially in New York and Pennsylvania. New York’s Metropolitan Transit Authority recently hiked tolls 7% across the board for use of New York City’s bridges and tunnels. Dairies operating or delivering into New York City pay dearly for access to that huge concentrated market. Congestion pricing, a plan to raise billions for mass transit by charging a fee to enter Manhattan’s Central Business District, frequent fines and parking tickets are expected costs of doing business. Last week, the New York Post reported that owners of a small milk delivery firm, Manhattan Milk, claim to be milked by the de Blasio administration with tens of thousands of dollars in parking tickets. The dairy says it is unable to contest because hearings have been suspended since the pandemic hit in March of last year. According to the NY Post, “They also claim they got hosed with tickets when drivers doubled parked outside dining spots. The sour milkmen say they can’t challenge some of the $30,000-plus parking tickets that could get dismissed during a live hearing — such as $115 tickets for double parking while making deliveries. According to owners, ‘This policy doesn’t make any sense. It’s almost forcing us to close the company and start somewhere else — like Florida.’” With increasing frequency, many Northeast states are implementing new laws and regulations that make it more difficult for large and small business to compete and survive. This often appears to be done in a vacuum with little or no consideration for the states’ ability to compete with surrounding states, other regions and globally. 20 • Northeast Dairy Foods Association, Inc.

The Tax Foundation points out: “The modern market is characterized by mobile capital and labor, with all types of businesses, small and large, tending to locate where they have the greatest competitive advantage. The evidence shows that states with the best tax systems will be the most competitive at attracting new businesses and most effective at generating economic and employment growth. It is true that taxes are but one factor in business decision— making, other concerns also matter. It is important to remember that even in our global economy, states’ stiffest competition often comes from other states. The Department of Labor reports that most mass job relocations are from one U.S. state to another rather than to a foreign location. State lawmakers are right to be concerned about how their states rank in the global competition for jobs and capital, but they need to be more concerned with companies moving from Detroit, Michigan, to Dayton, Ohio, than from Detroit to New Delhi, India. This means that state lawmakers must be aware of how their states’ business climates match up against their immediate neighbors and to other regional competitor states. When considering legislation, state politicians and bureaucrats must be cognizant of two rules that apply equally to taxes and regulations: 1. Taxes matter to business. Business taxes affect business decisions, job creation and retention, plant location, competitiveness, the transparency of the tax system, and the long-term health of a state’s economy. Most importantly, taxes diminish profits. If taxes take a larger portion of profits, that cost is passed along to either consumers (through higher prices), employees (through lower wages or fewer jobs), or shareholders (through lower dividends or share value), or some combination of

the above. Thus, a state with lower tax costs will be more attractive to business investment and more likely to experience economic growth. 2. States do not enact tax changes (increases or cuts) in a vacuum. Every tax law will in some way change a state’s competitive position relative to its immediate neighbors, its region, and even globally. Ultimately, it will affect the state’s national standing as a place to live and to do business. Entrepreneurial states can take advantage of the tax increases of their neighbors to lure businesses out of high-tax states.” There are so many challenging variables facing the dairy producer and dairy plants that it is a wonder they are doing as well as they are – concentrated animal feeding operations, water and environmental regulations, price volatility, licenses, permits, personnel regulation, perfluoroalkyl substances, sugar and fat restrictions, packaging limitations and a whole lot more too numerous to mention. As politicians introduce new legislation, they should be totally aware of the impact of what they are doing to our state and how it changes our competitiveness in relation to other states and regions. The most significant threats may not always originate with elected officials but from unelected and typically unaccountable appointed bureaucrats. Examples of these are transit authorities, Thruway authorities, special commissions, wage boards and others. Typically, the state executive branch has several departments beneath it ranging from agriculture, education, environmental, health, labor, motor vehicles, taxation & finance, transportation, etc. From time to time, these departments are directed to form subcommittees to study specific issues, hold public hearings, collect information and then determine what, if anything, needs to be done. A final vote and recommendations are then sent to

Something to Consider

the state commissioner, who usually gives final approval. The problem with this type of governing, especially on major issues, is that it separates the elected legislature from their citizens. The John Locke Foundation of North Carolina said it best, and this can be applied to all 50 states: “No More Unaccountable Government – legislators, not unelected bureaucrats, should make major policy decisions. State agencies should not be allowed to issue regulations that exceed federal requirements. That does not mean that North Carolina would not be able to exceed federal requirements. The question is whether unelected and unaccountable state bureaucrats or political appointees should be the ones deciding whether the state should exceed federal standards, rather than leaving such decisions to elected lawmakers. As a matter of good government on issues of such magnitude that can kill jobs and make the state less competitive with its

neighbors, the legislature, which is the lawmaking body of the state, should decide whether North Carolina should impose these costs on its citizens. Cost-benefit analysis should be required for all agencies. The federal government has required a form of cost-benefit analysis of regulations for nearly 40 years. The legislature should codify in statutes detailed cost-benefit analysis for all agencies. Unelected state bureaucrats and political appointees make some of the biggest policy decisions in North Carolina. These decisions can have a devastating effect on the economy and on jobs, but if they displease the public, voters can do nothing about them because they are unable to vote out the people responsible.” CONTINUED ON NEXT PAGE ►

NED Magazine | Fourth Quarter 2021 • 21

Something to Consider In recent years, the frequent use of unelected appointees to do the bidding of a few members in the state legislature with dairy issues has been most prevalent in Vermont. Vermont has a Milk Commission that was formed in 2008 by then Gov. Jim Douglas and is overseen by the Department of Agriculture. It consists of six appointed members from the public. Most have some dairy background or association with the industry. According to its website: “This commission has authority over milk prices as well as equitable minimum producer prices and will hold public hearings in order to be informed of the status of the state’s dairy industry. The committee may accept voluntary payments and may assess a premium on handlers and distributors for milk sold at retail in Vermont.” The commission members have always had noble intentions. It was only when one or two members of the State Senate sat in on the commission with intent to steer and direct matters that things got dicey. On one occasion, a state senator pushed for placing a 38-50 cent a gallon premium (tax) on fluid milk sold at retail. Any lower-priced milk entering Vermont from out-ofstate would be taxed, too, and the proceeds given to Vermont producers. Despite being warned of the legal ramifications of doing this (West Lynn Creamery v. Healy, 1994), the commission forged ahead under the thrust of this one senator. It was not until the State Attorney General’s office testified against the strategy at one the hearings that the matter was dropped. (Read Taxation by Unaccountable Strangers by John McClaughry, Vermont Ethan Allen Institute, reprinted on page 23.) A more familiar and recent application of unelected and unaccountable appointees tasked with making monumental decisions regarding the future of state agriculture is the tiny three-member New York Farm Laborers Wage Board. The Wage Board was appointed following passage of the New York Farm Laborer Fair Labor Practices Act of 2019. The act grants overtime pay to farm workers, the right to organize and engage in collective bargaining, workers’ compensation, paid family leave and unemployment insurance. The overtime threshold has been lowered to 60 hours per week. The three-member Wage Board must now decide if it is going to recommend lowering it to 40 hours before the end of this year. The decision and recommendation will be forwarded to State Labor Commissioner Roberta Reardon for final approval. The three appointed members of the Wage Board are Brenda McDuffie, president of the Buffalo Urban League, who is chairperson of the board; David Fisher, president of the New York Farm Bureau, and Denis Hughes, former president of the New York AFL-CIO. It is estimated that there are 24,000 farm workers in New York. However, this small Wage Board’s recommendation will 22 • Northeast Dairy Foods Association, Inc.

have lasting effects on many thousands more. It must consider all the allied and supporting businesses associated with New York agriculture, a large and developed food industry infrastructure that includes trucking, processing, manufacturing, and distribution. The enormous financial investment made over decades by businesses, both large and small, at our farms and plants must be recognized. New York needs to view the big picture and take note of what is at stake. Some members of the Senate and Assembly have introduced legislation (S.2690) extending the deadline for the Wage Board to make its final recommendation to Reardon by 2024. Bill sponsors believe more time is necessary to properly evaluate further reductions in the 60-hour threshold and the impact it would have on New York farms and families. The bill also says the board shall call upon and consult with agricultural employers and farm laborers, and their respective representatives, in the occupation or occupations involved, and with such other persons, including the state agriculture commissioner, and Cornell University. The board shall also have power to administer oaths and to require, by subpoena, the attendance and testimony of witnesses. While a step in the right direction, Bill S.2690 does not go far enough. The legislature should provide funding for a detailed and thorough research and computer modeling analysis with impact projections out to ten or more years. Funding should be provided for a collaborative unbiased report to include agricultural experts from Cornell University, the University of Missouri and the University of Wisconsin-Madison. The analysis should measure the impact over time to New York’s entire agriculture community, which includes farmers, employees, all supporting businesses, trucking, processing plants, manufacturing plants, distributors, investors, consumers and others. The Wage Board can continue its efforts collecting its own data while waiting for the results of the research outlined above. New York should maintain its present 60-hour threshold until the results of the research are made public and when at least four adjoining states adopt similar legislation. Ideally, we should do away with the Wage Board and place the future of New York agriculture back where it belongs – in the hands of the Senate and Assembly. Then, each member of the New York legislature can stand up and courageously cast their vote. Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.

Something to Consider

Taxation by Unaccountable Strangers BY JOHN MCCLAUGHRY

(Editors note: The following is reprinted with permission from its author John McClaughry, president of the Ethan Allen Institute. It was originally published by the Ethan Allen Institute on Oct. 21, 2008. Both Gary Latta and the late Bruce W. Krupke considered it a “classic.”)

ermonters have always taken pride in their closeness to their legislators. Even after the reduction of the 246 member House to 150 in 1966, Vermont still has the fewest people per representative (around 4,200) of any state in the union, save only New Hampshire with its 400 House members. The great merit of such small districts is that voters can get at their elected representatives. If a legislator strays too far off the acceptable path, he or she is likely to be retired in the next biennial election. This is what the framers of the Constitution expected when they declared that “all officers of government are [the peoples’] trustees and servants, and at all times, in a legal way, accountable to them.” (Ch. I, Art. 6th). There is one huge issue on which the people have always insisted on holding their legislators accountable: taxation. That’s why the Constitution also declares that “previous to any law being made to raise a tax, the purpose for which it is to be raised ought to appear evident to the Legislature to be of more service to community than the money would be if not collected.” (Ch. I, Art. 9th). It would seem crystal clear, then, that Vermonters insist that if tax dollars are to be taken from their pockets, their servants, the legislators, have to vote to do it, and answer for it to the people. But to a majority of legislators in recent years, that fundamental principle is not clear at all. They understand that faithfully observing that constitutional language can cause trouble for them at election time. Thus, they conclude, it’s best to disguise revenue raising measures so that the voters can’t figure out who’s taking their money and who authorized them to do so. Here’s an example. The 1990 legislature decided that more funds needed to be raised to support energy conservation. So it enacted a one-half percent tax on home heating fuels. But when the fuel dealers tried to show this tax on a homeowner’s heating oil bill, like the tax on a dinner check in a restaurant, the state forced them to desist. That way, hardly anyone would know that the higher fuel price resulted from legislators enacting a new tax. That concealment of the new tax was bad enough, but the 1999 legislature broke new ground. It authorized a state

regulatory body, the Public Service Board, to levy as much as it cared to on everyone’s electric consumption. The proceeds were needed, so the solons concluded, to fund a state “efficiency utility.” (In 2008), the PSB will extract $30.75 million for that purpose, rising to $40.7 million in two years. VPIRG and the Conservation Law Foundation are clamoring for the PSB to increase the tax to $81 million a year. Meanwhile the Vermont Milk Commission has proposed a tax, called an “assessment,” on distributors of fluid milk to Vermont stores. If finally approved by the commission (as an “emergency rule”), the retailers will necessarily pass the new tax on to their consumers. They’ll pay from 38 cents to 50 cents more per gallon. The commission will hand the proceeds out to dairy farmers. So how did your legislator vote on these tax increases? The nasty surprise is that they did not. They simply handed out the power to tax to two appointive boards and tiptoed away from the scene of the crime. You are the poorer, and even if you are clever and persistent enough to figure out how your pocket is being picked, you have nobody to hold accountable for it. This is not the kind of government that the framers of the Constitution, and two hundred years of their successors, envisioned. If legislators are the servants of the people and “in a legal way, accountable to them,” they can not authorize non-accountable strangers to levy taxes on the people. If legislators decide that the purpose for which a tax is raised appears “evident to the Legislature to be of more service to community than the money would be if not collected,” they can vote to raise it. Then they can go back to Putney and Rochester and Lincoln and Richford and explain their vote to their voters. And on the next election day, they’ll find out if the voters approved the actions of their servants. Deny this, and you have denied the fundamental principle of a free republic: no taxation without (accountable) representation. John McClaughry was a senior policy advisory and executive secretary of the Cabinet Council on Food and Agriculture during the Reagan Administration, as well as a Vermont state senator and founder of the Ethan Allen Institute.

NED Magazine | Fourth Quarter 2021 • 23

Milestones Celebrating Longevity in the Dairy Industry

s we prepare to put 2021 in the history books (and, oh, what a year it has been!), the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association would like to congratulate members who have celebrated milestone anniversaries this year. We are particularly amazed at how many of our members have truly stood the test of time – up to 175 years and counting – to keep our industry moving and contribute to putting delicious, quality dairy products in almost every grocery cart in the Northeast and beyond. The information on the following pages was submitted by members who responded to the queries we’ve put out over the past few months. Nonetheless, we wish every one of our members celebrating a milestone in 2021 a round of applause for their accomplishments and contributions to the dairy industry. Pour yourself a nice cold glass of milk, and toast to your success! 24 • Northeast Dairy Foods Association, Inc.

HP HOOD, LLC: 175 YEARS

After two years of delivering milk for other farms, Harvey P. Hood decided that people deserved better, fresher, more reliable, premium-quality milk. So, in 1846, he started his own business in Charlestown, Massachusetts. Harvey Hood wouldn’t work with just any farmer. From the start, he established a basic principle that, as a milk dealer

serving the consuming public, it was his responsibility to protect the health of his consumers by providing products of the highest quality. That same principle guides the company today – 175 years later – as the company remains committed to sourcing milk only from the best farmers who pledge not to use artificial growth hormones and demonstrate the highest standards of quality, animal care, environmental

Member Milestones REMEMBERING JOHN A. KANEB

stability and workforce development. Hood believes that what’s good for farmers, their land and their livestock is good for milk! In 1849, Hood hired its first scientist to prepare modified milk for babies and began to introduce pasteurized milk throughout New England. Around the turn of the century, the first Hood ice cream was produced in Hood Creamery retail stores. In the 1940s, the first woman route driver was hired, and New England’s Hoodsie Cups were introduced. In 1969, the company introduced Nuform low fat milk, becoming the most extensive line – milk, ice milk, yogurt, cottage cheese – of low fat dairy products in New England. Three years later, in 1972, the company changed its name from HP Hood & Sons to HP Hood, Inc. That same year, Hood invented Frogurt,

the first frozen yogurt in the U.S. This invention stemmed from a request for a low fat dessert by Bloomingdale’s department stores. In 1991, Hood produced its first non-dairy product, Hood Non-Dairy Country Creamer, and shortly became the nation’s leading producer of extended shelf-life dairy products. The Kaneb family purchased Hood in 1995, becoming only the third owners of the company. Since that acquisition, Hood has extended its roots from a New England dairy company to become a national food and beverage (both dairy and non-dairy) manufacturer with 13 processing plants and 3,400 employees across the country. The Kaneb family has increased the annual sales of the company from $600 million to about $2.7 billion in CONTINUED ON NEXT PAGE ►

While 2021 was a year of celebration, it was also a year of loss. John A. Kaneb, chairman and CEO of HP Hood, LLC, died at the age of 86 in August 2021. He was married to his wife, Virginia “Ginny” Pyne in 1957, in the same year he was commissioned as a junior officer in the United States Navy. After a hardship honorable discharge from the military upon the death of his father, Beton Michael “Mike” Kaneb, in 1959, John took over the management of Northeast Petroleum, a company Mike had founded. John and his brother, Albert, built Northeast Petroleum into New England’s largest petroleum distribution business and later sold it in 1983. Three years later, John and his son, Gary, founded Catamount Petroleum, which was sold to Gulf Oil Limited Partnership in 2005. The family acquired HP Hood in 1995 and grew the company into the largest privately-owned processor in the country. John served in leadership roles for a vast number of organizations, including as a member of the board of fellows at Harvard Medical School, a trustee at the University of Notre Dame and the director of The Innocence Project, an organization that seeks to exonerate innocent prisoners and prevent wrongful convictions. He was also a limited partner of the Boston Red Sox. He and his wife were parents to six sons, 18 grandchildren and three great-grandchildren. In addition to leading Hood to become a leader in the dairy industry, he will long be remembered for his quiet generosity.

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Member Milestones 2020 by investing in innovation and diversifying the company’s offerings to account for shifting consumer tastes and needs. Hood counts among many of its achievements over the past 25 years the launch of the Hood LightBlock Bottle, construction of a manufacturing plant in Winchester, Virginia, in 2000; the acquisition of Crowley Foods and its portfolio in 2004; and the purchase and repurposing of its Sacramento, California, and Batavia, New York, plants. The company has always looked to innovation as a key component of its success. It recently announced a partnership with Enel Green Power to evolve its sustainability efforts by powering its plants with renewable energy. This partnership has also reinforced the company’s commitment to effect positive change throughout its operations. Helping the community that supports its businesses has always been a priority to Hood. As dairy products play an important role in achieving good health, Hood’s community support efforts are currently focused on organizations that assist children and families in the areas of health and nutrition. That’s been especially critical during the COVID19 pandemic, and Hood is proud to have donated more than one million servings of dairy products both directly to consumers and through its partnership with Feeding America and other organizations. This fall, the company unveiled a new mural designed and created by Boston artist Silvia Lopez Chavez. The mural depicts Hood’s core values of quality and innovation, sustainability and community and is a celebration of the company’s employees and the people they serve. Hood branded dairy products have also featured a special anniversary logo on its packaging throughout 2021. HP Hood, LLC, is a member of the Northeast Dairy Foods Association, Inc. 26 • Northeast Dairy Foods Association, Inc.

H.S. CROCKER: 165 YEARS

In 1798, Alois Senefelder, helping his mother in her laundry using a porous stone, invented stone printing-lithography. The porous stone represented a significant stage in the continuing development of the lithographic process, which grew and evolved rapidly with the transferring of images from specially treated paper to lithographic stone. By the late 19th century, there were well over 400 hand-driven and 30 steam-driven presses operating in the United States. Lithographic printing, as a commercial printing process, started with flatbed presses and evolved to direct rotary presses. Ira W. Rubel is credited with pioneering lithography as an industry. Of special interest is one stone, which shows the name of H.S. Crocker, Inc., along with an early subsidiary, Cunningham, Curtis & Welch Company Los Angeles. The first offset-lithographic press manufactured in America was purchased and used by H.S. Crocker

Company and later donated to the Smithsonian Museum. The company’s beginnings were humble. Founded in 1856 in Sacramento, gateway to the California gold fields, the first headquarters was a tent with a small sign that read simply: “H.S. Crocker Company Printers.” Promising “first class printing” to all customers, the company soon moved into a wood frame building. As millions in gold and silver poured down from the Mother Lode in California and Nevada, San Francisco became a city almost overnight. It also became the center of the West Coast printing industry. In 1871, Crocker established its first printing and lithography plant in the City by the Golden Gate. In 1885, Crocker erected a fivestory plant, considered to be the finest commercial printing establishment in the West. Here, it operated its own steam plant, selling power to other printers in the area. Expansion continued with the purchases of other companies, including

Member Milestones Independent Lithograph Company in 1958 and Strobridge Lithograph Company of Cincinnati in 1960. H.S. Crocker acquired Fraser Label Company of Chicago in 1969, and, in 1972, it purchased Lockwood Folding Box Company, which had been doing business in Norristown, Pennsylvania, since 1850 and long noted for pharmaceutical carton production. H.S. Crocker originally started its pharmaceutical operation in its Baltimore, Maryland, plant. The operation was moved to Lionville, Pennsylvania, to allow for more production space. In 1993, the plant relocated to Exton, Pennsylvania, to accommodate growth and expansion and to better serve its pharmaceutical customer base. Through continual capital investment, the Exton plant is equipped with stateof-the-art prepress, press and vision systems designed to meet the high quality demands of the pharmaceutical business. In 1996, H.S. Crocker relocated its state-of-the-art corporate offices to Huntley, Illinois. This move allowed H.S. Crocker to expand and update equipment to keep on the cutting edge of the ever-changing lidding market. In recent years, the growth of the company has made it necessary to make two additions to its Huntley plant. It has also made investments in equipment to ensure the highest quality in products to deliver to its clients. As a result, Crocker’s research and development and design capabilities are geared to be responsive to customer needs. Its success begins with understanding customer requirements. Its niche focus has supported extensive capital investment to ensure that it has manufacturing tailored to provide superior quality and service. H.S. Crocker is a member of the Northeast Dairy Suppliers Association.

GEA MECHANICAL EQUIPMENT U.S., INC.: 140 YEARS

GEA is happy to celebrate its 140th anniversary in 2021. It all started in 1881, when German-based Metallgesellschaft AG was founded as a metal trading company by Wilhelm Ralph Merton, Leo Ellinger and Zachary Hochschild, later to become Gesellschaft für EnstaubungsAnlagen or GEA. When domestic mines could no longer satisfy Germany’s metal requirements, the company developed extensive relationships abroad, eventually entering the financing and the shipping industries in the 1920s. Following the death of Merton, his sons, Richard and Alfred Merton, assumed leadership, which was followed by significant foreign losses and barriers to international business during WWI. It was around that time that the company entered into chemical trading and land and water transport sectors. World War II brought an especially challenging time to the company. Alfred and Richard Merton moved to England, and there was extensive destruction of German MG facilities during the war. In the late 1940s, Richard Merton resumed leadership as chairman of the supervisory board, and the company underwent a period of intense reconstruction and financial growth with increased focus on plant engineering. Reconstruction of power plants helped GEA get back on track. By 1971, the company had organized into five divisions: metal processing, plant construction, chemicals, transport and communications with centralized function covering finance, staff and administration and technology. In the 1980s and 1990s, the company increased its focus on specialty chemicals through key acquisitions and environmental technologies. However, heavy losses on oil futures transactions in the NED Magazine | Fourth Quarter 2021 • 27

Member Milestones

U.S. plunged the company into crisis. In response, the company restructured and divested more than 300 subsidiaries and re-organized into four divisions: engineering, chemical, building systems and trading services. From 1991 to 1995, the company made a significant advancement toward a food and beverage focus with the acquisition of several companies with a long history in the industry. In 1999, the company acquired a majority stake in Bochum-based Gesellschaft für Entstaubungs-Anlagan mbH, which was founded in 1920 by Otto Happel as a dedusting company. It was by merging with Bochum concern-GEA in 1999 that the company took its current name, GEA, which evolved into a global mechanical engineering company with deep process expertise across several industries, including agriculture/dairy 28 • Northeast Dairy Foods Association, Inc.

technologies. In the early 2000s, GEA AG merged with parent company mg technologies, then renamed GEA Group Aktiengesellschaft, and its headquarters moved from Frankfurt to Bochum, Germany. In 2010, the company further streamlined and centralized, moving its headquarters to Dusseldorf with a focus on “engineering for a better world.” A few years later, the GEA division organized under two business areas: solutions and equipment, while at the same time it intensified its food and beverages acquisitions. 2007 to 2014 marked a period of ever-increasing focus on the food and beverages industry, which the company now views as a long-term growth industry. Today, GEA’s 140 years of experience and know-how is leading the way in processing dairy food with about 20,000

employees worldwide. The GEA group is compiled of a host of long-established companies noted for excellence in each of their industries. GEA is proud to have transitioned into an industry to the point where food and beverage account for 70% of its total revenue, with dairy being the primary focus. Its dairy process offering includes sanitary valves, homogenizers, separators, membrane filtration, evaporators and dryers and more. GEA’s Farm Technologies group includes robotic milking machines, feeding systems and manure management. It is an expert in building large-scale facilities that the dairy processing industry needs to keep pace with demand for milk and dairy products. The company design engineers and supplies complete plants, processing lines and equipment for treating raw milk and also manufacturing, filling and packaging milk and milk-based products, including ice cream, yogurt, butter, cheese, milk powder and whey. All GEA dairy processing technology is designed and engineered to meet strict hygiene, food safety and quality standards, while operating efficiently and sustainably. “We at GEA are extremely proud of our long-term history in providing equipment, expertise and overall solutions for improving production efficiencies in the multiple industries in which we are engaged – with the food and beverage industry being our predominate focus,” said Michael Vick, vice president, separation and flow, GEA North America. “A company portfolio that incorporates historic names, such as Tuchenhagen, Niro, Surge and Westfalia Separator, demonstrates our past and future contribution to improving the dairy industry in particular.” GEA Mechanical Equipment U.S., Inc., is a member of the Northeast Dairy Suppliers Association, Inc. CONTINUED ON NEXT PAGE ►

You’ve made us part of your You’ve You’ve Y ou’vemade made us us You’ve part ofyour your celebrations forpart 175 of years. celebrations for celebrations 175 years. Now, No Now w,, raise a for glass175 withyears. us. Now, Now No wraise , raise aa glass glass with us. Now, with us. A commitment to quality since 1846. A commitment to quality since 1846.

A commitment to quality since 1846.

Member Milestones

FORBES CHOCOLATE: 120 YEARS

Benjamin P. Forbes was a man who followed his own ideas. One of those ideas was to establish his own chocolate company. After gaining experience in the chocolate business working for Milton Hershey, he returned to Cleveland and founded his own company, Forbes Chocolate, in 1901 – 120 years ago! Among Forbes’ many accomplishments was the development of a powder – rather than a syrup – in the late 1920s as a way to make delicious chocolate milk. This vastly superior product changed the market for chocolate milk forever. Like any business venture, the company saw good times and bad. But, through it all, Benjamin focused on the good in both life and people. He viewed life with a particular zest and espoused working hard to reach one’s goals. Yet, he always remained thankful for what he had, taking time for simple pleasures and being considerate of others. That philosophy served him well throughout his long life. He died at the age of 103 in 1976. His son, Benjamin F. Forbes, took over the chocolate company until selling the business to Dar Geringer in 1986. Geringer had worked his way through the company in various capacities under the Forbes family for 40 years, eventually taking the role of general manager, where he handled the day-to-day operations until he 30 • Northeast Dairy Foods Association, Inc.

purchased Forbes Chocolate. It was a smooth transition, as he knew the company well and was assisted by his brothers, Dennis and Douglas, along with his long-time office assistant, Judy Spraggins. Geringer led the company

through a period of rapid growth and expansion, and, within three years of taking over, Forbes had outgrown its plant and relocated to a larger facility. Sales doubled and many new customers were added.

Member Milestones When Geringer passed away in 2004, his son, Keith, became president and remains in that position to this day. Since then, the company has continued to grow. It relocated again in 2007 and then expanded its current facility in Broadview Heights, Ohio, in 2020, adding state-of-the-art automated production equipment to make the manufacturing process highly efficient and less labor dependent. While today, the plant bears no physical resemblance to where it started, the commitment to quality products and satisfied customers has remained over a century. It credits its success on a careful understanding of how the industry and/or market is evolving and to being willing to invest in the latest equipment and newest technology in order to keep moving forward. Over its 100 years, Forbes considers the size of dairies – from small, local dairies to dairies that deliver products to half of the U.S. – as one of the biggest industry changes to impact its business. This dramatic shift forced Forbes to change from a regional company to a national and international supplier, growing and expanding by instituting its own changes in production and distribution. However, the company is quick to always remember its roots, noting that a call saying someone is starting up a dairy and wants to make chocolate milk is always welcome. Today, Forbes continues to operate out of its Ohio manufacturing facility, as well as maintain North American distribution from seven warehouses throughout the U.S. “It makes me proud that we have been around this long. It’s a tribute to all those who have been with us through the good times and the bad – employees, customers and suppliers,” said Keith Geringer. “It is not often that we see companies make it to 120 years

without being bought by someone. We have been able to stay true to our roots while continuing to grow and evolve.” Forbes Chocolate is a member of the Northeast Dairy Suppliers Association, Inc.

FARM CREDIT EAST: 105 YEARS

On July 17, 1916 – 105 years ago – President Woodrow Wilson signed the Farm Loan Act into law to create a national network of member-owned cooperatives to finance American agriculture by providing the necessary credit to the country’s agriculture and rural communities. That was the start of the Farm Credit system. This system has evolved over the past century to meet the changing needs of agriculture, including the dairy industry, forest products and the

commercial fishing industry. Through it all, Farm Credit’s founding tenets have remained true – customer ownership, unsurpassed expertise, dedication to the industries it serves, a deep commitment to borrower success and a focus on customer values. The visionary concept of Farm Credit was cooperative ownership. This was something quite innovative at the time and not well known by other lenders. Most people didn’t think the idea would last. They were wrong, as today cooperative ownership is still the bedrock of what the Farm Credit system is all about. Herbert Myrick of Springfield, Massachusetts, championed three fundamental concepts in the Farm Loan Act: cooperative ownership; the idea that the Farm Credit system ought to benefit borrowers through lower interest rates and

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Member Milestones

patronage dividends; and the notion that it could be possible to package quality first mortgage loans on farm real estate and take those to the New York City money markets to fund new financial systems. Soon, federal land banks were charted. Northeast farmers were served by the Federal Land Bank of Springfield, which started in 1917. During the 1920s, the development of agricultural colleges and cooperative extension programs brought a great focus to farm productivity and business practices. Up until this point, Farm Credit focused only on farm mortgage loans, but it became apparent that farmers also needed credit for seasonal operating purposes. Hence, a major change to the Farm Credit system. 32 • Northeast Dairy Foods Association, Inc.

The Great Depression devastated farmers. After President Franklin D. Roosevelt was elected in 1933, Congress quickly passed the Emergency Farm Mortgage Act and the Farm Credit Act, shoring up cooperative ownership while also adding additional capabilities. Some of the most important changes were advocated for by two New Yorkers, William I. Meyers and Henry Morgenthau Jr., who helped develop production credit associations, which were farmer-owned associations that could lend money not only for mortgages but for operating and production purposes, too. This created a new system called the Bank for Cooperatives, which enabled Farm Credit to finance not only the farmers

but also their marketing and farm supply organizations and other needs in order to be more productive, profitable and safe. WWII caused a major disruption, as farmers worked hard to meet the demand of feeding its military overseas. After the war, the Baby Boomers worked hard to put the country back together through technology that led to productivity growth. More farms consolidated, which allowed for greater production expertise and an improvement in equipment and management that resulted in significant productivity increases per acre. President Dwight D. Eisenhower separated the Farm Credit Administration from the Department of Agriculture in 1953, which was a significant step forward in helping the farming community. The 1970s saw the opening of trade with Russia and other parts of the world, resulting in a boom in American agriculture. American farmers were tasked with feeding the world’s population. The Farm Credit Act of 1971 extended credit to farm-related businesses and some rural residents, as well as opened up a whole new area for Farm Credit to provide business services so that farmers could be more profitable and better manage their financial risk. Howell Hughes was a key player in opening up these financial services for farmer members, as he updated the credit underwriting, loan approval and appraising processes in the Northeast. This would later help the region avoid some of the most difficult problems resulting from the Recession in the 1980s when land values plummeted, production costs rose and drought damaged crops. Farm Credit was not prepared for such a dramatic economic disruption. However, Congress acted to establish the Agricultural Credit Association, which allowed local farmers to put real estate, production and other type of lending into one local credit institution.

Member Milestones Today, Farm Credit East has evolved into an agricultural credit association governed by a board of directors that enables producers to obtain real estate, production and other types of loans at one local institution. It has evolved by working with customers all along the farm-to-table chain. And, the producers are still the cooperative’s core customer base. Through the years, Farm Credit East has financed more vertically integrated businesses, too, including many operations involved in the dairy industry. In fact, today, dairy is the largest segment of Farm Credit East’s customer base. It has become the largest lender to agriculture in the Northeast with $7.5 billion in loans that capitalize a wide range of industries and serves more than 15,000 customers across its seven-state territory. It is part of the larger Farm Credit System, a nationwide network of banks and retail lending associations dedicated to supporting the borrowing needs of U.S. agriculture and the nation’s rural economy. “Since its founding, Farm Credit East has been committed to providing reliable credit to the region’s agricultural producers, including thousands of dairy farm members. We have withstood industry challenges alongside our customers, and, just like them, have evolved our business to meet their growing needs, including the adoption of financial services and expanding to serve other resourcebased businesses, like forest products and commercial fishing,” said Mike Reynolds, CEO of Farm Credit East. “Just as we have for the past 105 years, we remain committed to being a trusted partner for today’s producers, supporting the industry’s up-and-coming generation and those new to agriculture, too.” Farm Credit East is a member of the Northeast Dairy Suppliers Association, Inc.

THE DAKE FAMILY/ STEWART’S SHOP ICE CREAM: 100 YEARS

The very first Stewart’s Shop wasn’t opened until 1945, but the Dake family, owners of the dairy retailer, celebrated 100 years of making delicious ice cream in 2021. In 1921, dairy farmers Percy and Charles Dake were busy making milk and butter, but the changing economy created an opportunity for ice cream production. They sold 4,000 gallons of ice cream in the first year, and this was the beginning of Dake’s Delicious Ice Cream. The Dakes purchased a bright red Model-T delivery truck and painted “Dake’s Delicious Ice Cream” on the side of it, making deliveries of bulk ice cream to Saratoga, Troy, Schenectady and Albany, New York, for $5 per 5 gallon can. With the help of Robert McMullen, the ice cream plant was relocated to a new state-of-the-art building at a cost of $150,000. During the same time period, McMullen built the biggest modern cow barn in the country – which was 20 years ahead of its time. Despite all of its features, there was never a cow in the barn, as McMullen went broke

in the stock market crash. That building, however, eventually became the Stewart’s Shops ice cream plant in 1950. True entrepreneurs, the Dakes sought other outlets for their talents, eventually becoming retailers. In 1945, the Dake brothers purchased a small dairy and ice cream business from Don Stewart. This became the first Stewart’s Shop in Ballston Spa, New York. Today, a Stewart’s Shop still exists in that very location. Now, there are 348 Stewart’s Shops selling delicious ice cream and other products in 31 counties across New York and southern Vermont. True to the company history, Stewart’s drivers still pick up fresh and local milk from 20 local dairy farms every day – the base for its award-winning, delicious ice cream. Customers can choose between dozens of flavors in half gallons and pints in the freezer or cones, milkshakes or sundaes at the counter. To commemorate 100 years of ice cream, an exhibit in honor of a “Century of Ice Cream!” was featured at the Saratoga County History Center/ Brookside Museum in Ballston Spa. Stewart’s Shops is a member of the Northeast Dairy Foods Association, Inc. CONTINUED ON NEXT PAGE ►

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Member Milestones

KROHNE: 100 YEARS

KROHNE is marking 100 years in 2021. The theme for this year’s celebration is “The Spirit of Creativity,” a motto that has been a key part of the company’s success for the past century. “Not too many companies in our business have lasted 100 years as a privately-owned company, so it’s exciting,” said Joe Incontri, director of marketing for North America. “One of the things (our second-generation leader) concluded early on is if you want to have a successful company, you have to be creative, and you have to hunt for unusual solutions to problems. That still goes on right now. Innovation is very important to KROHNE.” Since its early days, the company’s core philosophy has remained the same – to provide the best possible measuring device for its customers. KROHNE was founded in Duisburg, Germany, by Ludwig Krohne. He wanted to create a device that measured flow for fire engines. Twenty-eight years later, following losses during World War II, Kristian Rademacher-Dubbic, 34 • Northeast Dairy Foods Association, Inc.

the founder ’s grandson and an artist, restarted the company. KROHNE’s first success came in 1952 when it introduced the electromagnetic flowmeter. At the time, all flow measurement devices were mechanically based, and KROHNE’s device was the first to measure flow without any moving parts. Instead, it used a magnet that detected a change in voltage. “That was really a hallmark for KROHNE,” said Incontri. “Since then, the innovations kept coming fairly rapidly, like ultrasonic flowmeters. That was something that had been done, but not very well. KROHNE took that and ruggedized it for use in industrial applications for liquids and then, ultimately, for gas. One of the more recent major innovations was the development of a Coriolis mass flowmeter that, at the time, was unlike anything on the market. It was a straight-tube Coriolis meter that was not affected by things that impacted every other mass flowmeter on the market, mainly vibration in pipes. That made it more accessible to a lot more applications. There is an emphasis on

being different and applying new twists on available technology and principles.” Innovation and creativity remain important to the company today. Now home to more than 4,000 employees and with production facilities in 11 different countries (including the United States, China, and France), KROHNE has become a world leader in filling machine applications, providing a variety of flowmeters, analysis products and devices that measure level, pressure and temperature. It also offers entrained gas management, a “unique solution” for food and beverage customers that are loading and unloading milk using KROHNE’s Coriolis mass flowmeter. “That feature is very attractive because it gives you an accurate measurement, even with the presence of air in the lines,” said Incontri. “When you’re unloading or loading a truck, the hoses are basically empty. When you start flowing, there is a whole bunch of air that goes through the meter, and some meters can’t handle it very well. So, we have an application for that.” Incontri said that there are two things that set KROHNE’s products apart from its competitors. The first is the company’s dedication to quality with products that are built to last a long time in difficult applications. The other is calibration, or performance of the instruments. “If you’re going to measure something, you want to make sure it’s traceably accurate that it measures to the best of its ability against a known standard,” Incontri added. “That really is our core competence – the calibration and traceability of our instruments.” KROHNE is also proud of its unique culture. All ideas are valued, and there is no rigid structure or hierarchy. And, because KROHNE is independently owned, it doesn’t face the same constraints as some of its competitors.

Member Milestones For example, the company offers several resources on its website, including the online KROHNE Academy, many of which are free of charge. “A lot of companies are basically quarter by quarter,” said Incontri. “We’re not bound by those same pressures, which allows us to make decisions on behalf of the customer that other companies may not be able to make, such as giving away services or spending more time with a small customer. There are many other bigger companies out there that would want to get paid for training materials or for software. I think that’s a reflection of the culture we have; we’re not just driven by the bottom line.” KROHNE kicked off its anniversary celebration with KROHNE Insights, a digital fair that offered an overview of the trends and industry topics in the form of

an industry-specific exhibition room with video messages, as well as live presentations. At the same time, visitors had the opportunity to learn more about the company’s spirit in a 100-year KROHNE showroom. KROHNE Insights is available worldwide in 12 languages at insights.krohne.com. Also marking the anniversary was the roll out of a website, krohne.com/100years, which bundles all information on the anniversary, including different activities to which the company will invite and involve customers, partners and employees. The anniversary highlights the sides of the company that go beyond measuring technology. “KROHNE is a multilayered combination of values. Our goal is to offer added value with our products, solutions and services,” said Dr. Attila Michael Biligic, CEO and spokesman

of the executive board of the KROHNE Groups. “We can achieve this only by knowing or even anticipating the wishes of our customers from various industries and their applications. Meeting them requires creative ideas that equally drive technical innovation and organizational development and continue to help KROHNE to accomplish pioneering achievements.” KROHNE is a member of the Northeast Dairy Suppliers Association, Inc. CONTINUED ON NEXT PAGE ►

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NED Magazine | Fourth Quarter 2021 • 35

Member Milestones RUTTER’S: 100 YEARS

LAND O’LAKES: 100 YEARS

One hundred years ago, in 1921, 320 dairy farmers got together in St. Paul, Minnesota, to form the Minnesota Cooperative Creameries Association with the intention of joining together to more effectively regulate, distribute and market its members’ dairy products across the United States, while also increasing profits. After Congress passed a law allowing cooperatives to market their products, the Minnesota Cooperative started the production and sale of a uniquely made sweet cream butter. A contest was held to choose a more interesting name for the product. It is said that two people came up with “Land O’Lakes,” so they split the prize – $500 in gold. (The name was appropriate, as the state of Minnesota is known as the Land of Lakes.) The butter became such a hit with consumers that, in 1926, the company took on the name of Land O’Lakes Creameries, Inc. Today, Land O’Lakes, Inc., remains a member-owned cooperative and one of the leading agribusiness and food companies in the United States. In fact, it is one of the country’s largest cooperatives and ranks 219 on the Fortune 500. Its brands include the iconic Land O’Lakes butter, Purina Animal Nutrition, WinField United and Truterra. Headquartered in Arden Hills, Minnesota, Land O’Lakes’ reach extends 36 • Northeast Dairy Foods Association, Inc.

to all 50 states and over 60 countries with approximately 9,000 employees. It has become a $14 billion a year business in not only dairy but also animal feed and seed and crop products. Its membership includes 2,500 dairy and agricultural producers, as well as approximately 1,000 smaller cooperatives and independent retailers. As part of the celebration of 100 years, President and CEO Beth Ford dedicated a new sculpture of a farmer on the Arden Hill’s campus. This statue is a reflection of the company’s renewed focus on its farmer members. Recently, the cooperative removed the image of a Native American woman that had appeared on its packaging for decades and introduced a new design for its products with an emphasis on “farmer-owned.” Under Ford’s leadership, Land O’Lakes has called for more investments in rural communities across the country and has created the American Connection Project to address the need for better broadband connectivity, particularly in rural areas. Partnering with other companies, Land O’Lakes has been able to turn on public Wi-Fi at nearly 3,000 co-op locations across the country. (Source: landolakesinc.com; a history of Land O’Lakes published by the International Directory of Company Histories (1998).) Land O’Lakes, Inc., is a member of the Northeast Dairy Foods Association, Inc.

While the company is celebrating 100 years, the story of Rutter’s actually dates back to 1683 when Conrad Rutter arrived in Philadelphia with his second wife, Jane Douglas, after leaving his German homeland. The family lived in Germantown, Pennsylvania, until 1747, when Conrad’s grandson, Andrew Rutter, was deeded 167 acres in York County from Springetts Penn, the great-grandson of William Penn. Fast forward to 1921, and George Rutter, a railway worker, and Bud Rutter, a recent high school graduate, partnered with their brother, Will, to run the family farm and find ways to make it more profitable. On the first day, George and Bud milked approximately 25 cows by hand to bottle 15 quarts of milk, thereby founding the dairy retail business. Their operation was named Crystal Spring Dairy, after the spring on the family farm that provided refrigeration in the early days of the operation. Door-to-door delivery service proved successful, and, through hard work and perseverance, the dairy prospered even during the tumultuous 1930s. In 1933, George and Bud invited their brother-inlaw, Lehman Crist, to join the operation, and the company changed its name to Rutter Brothers Dairy. The first employees were hired for $8 per week. In 1938, the Rutter brothers were cited for breaking the law because their cream contained 8% more butterfat than was allowed. The brothers thought the charge would devastate their business, but the newspaper headlines proved to be a blessing in disguise, as sales soared after word spread that the company produced such high-quality dairy products. The 1940s brought the struggles of WWII. Seventeen employees left to join the military, and most available resources were used in the war effort. Despite the

Member Milestones

challenges, drivers, sometimes working two routes in one day, kept up with deliveries, and, by 1946, the dairy was producing 12,000 quarts of milk daily. The company obtained its first mechanical refrigerated delivery truck in 1954. Rutter’s launched new ventures in the 1960s and 1970s, particularly in the face of increased competition from supermarket chains. The first Farm Store was opened in York, Pennsylvania, in 1968, at a time when convenience stores were a relatively new idea. By 1969, three more Farm Stores opened. In 1972, the company purchased Warners Dairy and Ice Cream Companies and opened its first restaurant.

To keep up with demand, Rutter’s contracted with First Capital Plastics, Inc., to build and operate an on-site plastic bottle manufacturing plant next to the dairy. The company’s now well-recognized red and yellow tractor trailers were not put into service for deliveries until 1975. This innovation allowed the company to delivery fresh dairy products to a much larger region, including Maryland, Delaware and New Jersey. Rutter’s did not shy away from the tech boom of the 1990s. Instead, the company implemented mechanical advancements during milk production, installing computers that could

efficiently control the entire process. Today, Rutter’s Dairy continues to evolve to meet the demands of a new generation. In 2021, all of Rutter’s milk comes from local, family-owned farms in Central Pennsylvania and Northern Maryland. Its processing plant in York receives milk daily, which means that customers often find it on the shelves within 24 hours. Striving to keep its recipes homegrown, the company makes its own chocolate milk with real sugar and cocoa powder and prepares its half-andhalf with fresh milk and cream. Rutter’s also sells items like juice, tea, eggnog and spring water and continues to prioritize the use of wholesome ingredients. Rutter’s credits the dedication of its employees for the company’s long-term success. From the very first milkmen to the order pickers of today, each member of the Rutter’s team has played a crucial role in the company’s legacy. Rutter’s honors this commitment of both its employees and its customers by investing back in the community, using sustainable practices, partnering exclusively with neighboring farms and donating to local charities. Rutter ’s is a member of the Pennsylvania Association of Milk Dealers. CONTINUED ON NEXT PAGE ►

NED Magazine | Fourth Quarter 2021 • 37

Member Milestones

HARRISBURG DAIRIES: 90 YEARS

Harrisburg Dairies was founded in 1931 through the establishment of a partnership between Ben Wolfe and Elias Wagner. In 1946, it was incorporated and developed the organizational structure that exists today. Throughout the years, it has remained family owned and operated. Edwin Wagner became Wolfe’s partner when 38 • Northeast Dairy Foods Association, Inc.

Elias Wagner passed away. When Wolfe died, his son-in-law, Fred Dewey, assumed management. Shortly before Edwin Wagner passed away, he sold his interest back into the company, leaving the Dewey family as sole owners. Today, Fred Dewey Jr. represents the third generation, while A.J. Dewey and Chrissie Dewey represent the fourth generation of family management. From 1931 to 1945, Harrisburg

Dairies was a pioneer in the introduction of homogenized Vitamin D milk and Purepak paper containers, among other innovations. The dairy started out with only a handful of home delivery accounts, but, through aggressive salesmanship under the direction of Ben Wolfe, Harrisburg Dairies grew rapidly through the Depression and WWII. By 1948, there were 30 retail routes and five wholesale routes. During WWII, Harrisburg Dairies was ordered by the federal government to supply the U.S. Army’s milk products at Indiantown Gap, Carlisle Barracks and the new Cumberland Army Depot. Even though this was a difficult task, the dairy managed to achieve success during this time period. Until 1996, the Commonwealth of Pennsylvania had a Grade AA quality rating, which required participating dairies to comply with standards up to ten times more stringent than those for Grade A Dairies. Since this rating was administered by Pennsylvania, and not the federal government, milk labeled as Grade AA could not be sold outside of the state. When this rating was eliminated in 1996, Harrisburg Dairies continued to produce the same high-quality products but was also able to expand the business outside of Pennsylvania. This change in business model has allowed the dairy to expand over much of the Northeast and Mid-Atlantic states by partnering with retailers and food service companies who service large regional territories. The company has always purchased its milk from local, independent farmers and has partnered with nearly 30 farms, many of which have been shipping to Harrisburg Dairies for three or four generations. The partnerships not only allow the company to support its local farm community but also ensures it is able to procure the highest quality milk available

Member Milestones “With 2021 being the year that Harrisburg Dairies celebrates its 90th year in business, it brings an opportunity to reflect on the overwhelming growth, adaptation and transformation our company has successfully endured to get to where we are today,” said A.J. Dewey, president. “Additionally, it provides a chance to look forward to what the next 90 years may bring. We are committed to putting forth the same level of hard work and dedication to this company as three generations have done before.” Today, all of the operations are located at the original facility in Harrisburg, where 100 people are employed. Harrisburg Dairies is a member of the Pennsylvania Association of Milk Dealers.

GIVE US SOMETHING TO CHEW ON. Are you introducing an interesting product? Have you instituted cutting-edge processes? Are you welcoming a new hire? Is your business expanding, moving or changing? Do you have other news to share?

Northeast Dairy magazine is always looking for Member and Industry News. Email your information, news releases and/or captioned photographs to us at editorial@nedairymedia.com.

FOSS NORTH AMERICA: 65 YEARS

Founded in 1956, FOSS North America was established by innovative engineer Nils Foss. His ambition was to offer automated and cost-efficient alternatives to time-consuming analyses in the food and agriculture industry. And, though much has changed in 65 years, the company’s approach to business and development of innovative analytical solutions has not. FOSS has made it its business to define the standard of analytical solutions for the food and agriculture industry. Pioneering advanced analyses for the challenging production environments in the 1960s, it was the first to integrate chemical composition analysis in process lines. Now, its resolve and ambition have made it the international benchmark in the field of chemometrics and real time analytics. FOSS holds over 100 patents and has made over 20 world-first introductions to the global market. The company helps producers maximize the value of their production, while

WHAT ON EARTH IS A NERD HERD? DAIRY FARMERS OF AMERICA’S NERD HERD IS A TEAM OF DAIRY FARMERS, SCIENTISTS, ENGINEERS AND MORE WORKING HARD TO REACH NET-ZERO CARBON EMISSIONS BY 2050. The Nerd Herd is here to combat misconceptions about dairy, cows and this planet we all call home. The truth is, dairy is sustainably made. We’re reducing emissions, powering farms with solar and wind and turning cow pies into electricity with anaerobic digesters.

Discover how Dairy Farmers of America is getting dairy to net-zero. And join the moooooovement simply by enjoying a glass of milk. Enjoy sustainably made dairy.

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NED Magazine | Fourth Quarter 2021 • 39

Member Milestones making the best possible use of valuable natural resources. It believes value for the customer and value for the environment go hand-in-hand. For example, its analytics will measure the level of protein in dairy products or help decide whether a cow is getting the right feed, is healthy and is producing good and nutritious milk. Its Innovation Centre in Denmark has become the chemometrics capital of the world. From this location, FOSS builds and maintains the algorithms that help businesses all over the world turn data into information and information into action. With the establishment of its new digital services division, the company assists big and small food and agricultural producers optimize production in a time of digital transition. Outside of Denmark, FOSS has manufacturing, research and development facilities in China, Hungary and Russia. Solutions are sold and supported through sales and service subsidiaries in 32 countries and by more than 75 distributors around the globe. Ninetynine percent of the company’s business is, in fact, generated outside of Denmark. The company currently employs more than 1,500 people around the world, including those with top-level scientific or technical backgrounds, and more than 20 PhDs with expertise in phototonics, chemometrics, physical chemistry, analytical chemistry, fermentation and bioengineering, nanotechnology, food science and adaptive radiotherapy among others. Kim Vejlby Hansen is the current CEO. FOSS is committed to a more sustainable use of the world’s food resources. A fast-growing population means that global food production will have to increase by 60% by 2050 to meet demand. The company aims to help ensure product quality, fair payment, production efficiency and reduce waste. 40 • Northeast Dairy Foods Association, Inc.

“2021 marks the 65th anniversary of the founding of FOSS. We are a family-owned, global leader in analytics for the food and agricultural industries. From the introduction of our original Milko Tester to the MilkoScan and BacSomatic technologies of today, we have been a pioneer in improving the quality and safety for all types of

dairy products,” said Mike Connelly, vice president of dairy sales. “We look forward to continuing to help lead the dairy industry into the future and being at the forefront of sustainable and efficient dairy production.” FOSS North America is a member of the Northeast Dairy Suppliers Association, Inc.

Member Milestones FLAVORCHEM CORPORATION: 50 YEARS

The flavor and fragrance industry saw several recent mergers and acquisitions as the world’s top suppliers seek opportunities to expand their capabilities and customer base. Despite the ongoing consolidations, Flavorchem Corporation, a Chicago-based supplier, is committed to keeping the business in the family. Founded in 1971 by brothers Salvatore and Phillip Sprovieri, Flavorchem remains family-owned as the corporation proudly celebrates 50 years of business in 2021. Flavorchem was founded with a focus on customer flavor creation for local establishments. The modest operation run out of a small building in Bellwood, Illinois, relocated to Downers Grove in 1982, where the global headquarters remains today. Shortly after the opening of Downers Grove, Flavorchem expanded into fragrance development and manufacturing with its fragrance division, Orchidia Fragrances. With fragrance and flavor manufacturing in China and Europe, Flavorchem became a significant player in the global marketplace. From humble beginnings, Flavorchem has grown to incorporate two business divisions and four global campuses. Today, the family-owned enterprise manufactures over 5,000 flavors, fragrances and private lab food products annually. It’s customers, brands well-recognized around the world, understand the advantages of working with a mid-sized supplier that can meet global requirements and yet offer a more boutique customer experience. “An organization is only as great as its people, and we recognize our achievements are only the result of combined efforts from every employee

at Flavorchem and Orchidia,” said Phil Sprovieri, vice president of sales and marketing. “We are proud to celebrate this anniversary with the people that made 50 years possible.” In honor of its 50-year anniversary, the company created a commemorative book capturing its rich history and achievements. Flavorchem Corporation is a member of the Northeast Dairy Foods Association, Inc.

Planning to celebrate an anniversary in 2022? Contact our editor at creff@nedairymedia.com.

NED Magazine | Fourth Quarter 2021 • 41

Member News

NDSA Awards $14,000 in Scholarships in Memory of Bruce W. Krupke

he Northeast Dairy Suppliers Association, Inc., recently announced it awarded a total of $14,000 to 11 students who were the winners of the Bruce W. Krupke Memorial Scholarship for the 20212022 academic year. Scholarships in the amount of $2,000 were awarded to students whose majors are related to the dairy/food industry or are in agriculture programs. Scholarships in the amount of $1,000 were awarded to students pursuing any major. Students attending two and four-year colleges and universities, as well as trade schools, and had a connection to the NDSA or NDFA membership were eligible to apply. Two years ago, the Northeast Dairy Suppliers Association board of directors dedicated the scholarship in memory of Bruce W. Krupke, who served as executive vice president of the Northeast Dairy Foods Association and Northeast Dairy Suppliers Association for 27 years. “We were thrilled to see the quality of applicants that we received for this year’s Bruce W. Krupke Memorial Scholarship,” said Bill Elliott, president of the Northeast Dairy Suppliers Association board of directors. “Northeast Dairy Suppliers Association is honored to be able to provide these funds to students who are working towards their goals and dreams. Congratulations to all the recipients!” 42 • Northeast Dairy Foods Association, Inc.

To be considered for a scholarship, applicants must be an employee, an immediate family member of a current NDSA or NDFA member or a student member of NDSA themselves, and must be enrolled for the 2021-2022 academic year as a full-time student with a minimum of 12 credits and a GPA of 2.5 or greater. Scholarship information is available each year after Feb. 1 with applications due by June 1 through the association’s website. Scholarships are funded through the association’s events, like the annual golf tournament and clambake, as well as member dues and sponsorship of annual industry events. “Receiving this scholarship was really a token of support for me,” said Jennifer Carl, who hopes to become a veterinarian after completing her undergraduate work in biology at St. John Fisher College. “When I tell people I want to become a veterinarian, I’m often reminded how hard it is and how many more years of school I’ll have to get through. That can be discouraging. But, winning this scholarship has been a reminder to me that I can accomplish this if I set my mind to it!” Here is an overview of this year’s winners accomplishments and plans for the future.

HANNAH BOYD

Hannah Boyd is the daughter of David Boyd, an employee of NDSA member Statco-DSI Process Systems. She is studying

Member News industrial engineering at the University of Pittsburgh. An honor student at the Swanson School of Engineering at Pitt, Boyd has received an amazing list of accolades and awards related to her studies. She is also an engineering ambassador and peer advisor for the university, as well as a Lean Six Sigma white belt. “I chose industrial engineering because, from a young age, I have always been inspired by my father to be an engineer. After further education and utilizing the resources provided at Pitt, I found that I enjoyed productivity analysis and operations research, both divisions of the industrial engineering field,” Boyd explained. ‘I foresee a future in logistics, and my end goal is to obtain a job in the industrial engineering field for a company that believes in sustainability and is always striving to improve its processes.” Boyd recently completed a co-op experience at FedEx Group, where she worked on the dynamic route optimization team developing and enhancing an application that creates work areas and optimizes routes for service providers. She also interned at Statco-DSI Process Systems. And, if that weren’t enough, this very accomplished young woman recently completed her first marathon!

JENNIFER CARL

Jennifer Carl is the daughter of Donna Carl, who is an employee of NDSA member Dairy Farmers of America. She is attending St. John Fisher College as a biology major. Carl ranked 10th in her high school class of 658 students and has won a number of scholarships and awards. At St. John Fisher, Carl is on the Dean’s List and is a member of the honors program and the Tri Beta Honor Society. She is also a player on the St. John Fisher volleyball team. Her work experience includes working for NDFA member Byrne Dairy at its New York State Fair ice cream stand and as a telemarketer for State Farm Insurance Co., as well as a veterinarian assistant at a local veterinarian’s practice. “I chose biology because of my passion to learn and understand how living organisms work. It will provide the framework needed to further my career as a veterinarian,” she explained. “My long-term goal is to earn a bachelor’s degree in biology with a minor in chemistry and then obtain my doctorate of veterinary medicine and complete a residency specializing in animal surgery. One day, I hope to open up my own veterinary practice.”

JUSTIN CARLSON

Justin Carlson is the son of Bradley Carlson, an employee of Agri-Mark/Cabot Cheese. On the Dean’s List and a recipient of the Dean’s Merit Scholarship, Carlson is a student at the

University of Vermont studying nutrition and food science. “I chose my major because I am very interested in how our food is produced and how its nutrients impact our health,” Carlson said. “I plan to take my knowledge of food science and nutrition and apply it as a nurse practitioner. My goal is to enter a graduate nurse practitioner program after graduation.” In addition, he served on the tribal council of the Abenaki Native American comnunity for several years. He has also worked as a resident assistant at an assisted living facility, as a machine shop equipment operator and also as a dental aide, assisting with COVID-19 protocols and infection control at a dental practice.

KELSEY DELANEY

Kelsey Delaney is the niece of Wendy Martin, the CEO for NDSA member Energy Partner Consultants, Inc. Now attending the London School of Economics, Delaney recently graduated from Union College with a double major in political science and philosophy and was the recipient of numerous honors and awards, as well as being on the Dean’s List. Delaney recently had an internship working for the public defender and district attorney’s offices in Albany, New York, where she helped gather information on cases. She was also a a volunteer for George Amedore’s campaign for the 46th New York State Senate District. “I chose to major in political science because, in order to combat climate change and other environmental issues, you must have a clear understanding of our political system. We need to conceptualize and implement changes to preserve the earth. Our understanding of developments in both sustainable and conventional environmental preservation methods will have impacts seen across all generations, and the main way we have to implement change in the system is to be directly involved in politics,” Delaney explained. “I chose my philosophy major because I wanted to be equipped with the skills that allow me to have a deeper understanding of topics and look at issues from a different perspective. With both of these majors, I will be able to make a large impact on our political system when it comes to implementing change and advocating for policies that benefit our environment.”

BRANDI HIMES

Brandi Himes is the daughter of Duane Himes, who is employed at NDFA member Turkey Hill Dairy. She is majoring in biology at Lebanon Valley College, where she is on the Dean’s List. She is a pharmacy technician and has worked as a donor support technician at CSL Plasma. Himes also works as a

NED Magazine | Fourth Quarter 2021 • 43

Member News trainer at Turkey Hill Dairy, helping new hires acclimate to their jobs. In addition, she has been on five mission trips that she calls “life changing” for taking her out of her comfort zone in order to help underserved communities. “I decided to study biology because it is a broad topic that covers many different subjects, so there is a surplus of opportunities for me,” Himes said. “”Biology also dives deeper into the definition of life and living.”

IAN MICHAEL MCHUGH

Ian Michael McHugh is the son of Catherine Paige McHugh, an employee of NDFA member Guida’s Dairy. He is studying neuroscience at the University of Vermont. In addition, McHugh is a cheesemonger, handling sales, customer service and food preparation with expertise in cheese and meat, including methods of preparation, food and drink pairings and flavor profiles. He is a ski instructor and a musician who plays five instruments and has recorded music published by local labels. “I chose to study neuroscience because I am fascinated and perplexed by the way medicines interact with our brains and can be used to treat chronic or limited-length mental health conditions,” he said, adding that it was his grandmother’s diagnosis of Alzheimer’s disease and dementia that inspired him. “On another note, I believe that my experience as a cheesemonger has given me great leadership skills and helped me learn to handle stress,” he added. “The job consists of working closely alongside co-workers and in a kitchen. As a result, I have become adept at navigating customer orders to find out what tastes they like and how I can provide them with valuable services to fit their needs.”

MATTHEW OSTERHAUDT

Matthew Osterhaudt is the son of Michael Osterhaudt, an employee of NDSA member Nalco Water. He is attending Le Moyne College, where he is studying biology in the Physician Assistant Program. Osterhaudt is also an Eagle Scout, who served as a staff member at the scout’s National Youth Leadership training, a tutor and was a member of the Fayetteville-Manlius High School varsity volleyball and rowing teams.  “I chose to be a biology major because my aim is to become a physician assistant through Le Moyne’s 4+2 Direct Entry Physician Assistant Studies Pathway, which allows me to earn a bachelor’s degree in biological sciences, followed by a master’s degree in physician assistant studies. I want to be a PA so I can help people on a daily basis and make a better community,” Osterhaudt said. “I am most proud of spending 11 years in 44 • Northeast Dairy Foods Association, Inc.

the Boy Scouts. I have gained self-confidence and leadership skills that I could have never learned anywhere else. This has helped me become a better version of myself.”

SAMANTHA PALMATIER

Samantha Palmatier is the daughter of Stacy Palmatier, who is employed my NDFA member Mountainside Farms, a division of Worcester Creameries. She is a student at SUNY Purchase pursuing a degree in cinema studies. “I love art and cinema and everything that goes into it,” Palmatier says of her college major. “I want to be involved in the making of movies, and my goal is to tell stories through films through directing, cinematography, writing, editing and more.” Palmatier has also worked at Mountainside Farms as an administrative assistant, as well as her family’s own Jonwan Farms, where she is a farmhand and assists with animal care. She has been involved in 4-H for a number of years, serving as president and vice president of the Color Clovers 4-H Club. Palmatier is also involved with the Delaware County Holstein Club, the Delaware County Jersey Club and the New York State Holstein Association, as well as other agricultural activities.

COLTIN JOHN PFLIPSEN

Coltin John Pflipsen is the son of Dustin Pflipsen, an employee of NDSA member Relco. He is a student at Alexandria Technical & Community College, where he is studying mechatronics. He earned the prestigious designation of Eagle Scout from the Boy Scouts of America and was a member of the National Honor Society, the varsity football and tennis teams and the First Robotics Club at his high school. He has worked as a commercial sheet metal laborer and at a residential HVAC company, helping complete installs, along with service and maintenance. Currently, Pflipsen is a mechanical and electrical assembler for a company that builds fully automated secondary packaging machines. “I chose the mechatronics program because of my involvement with First Robotics. I enjoy working with my hands and being able to see my progress for the day. The mechatronics program works with hydraulics, pneumatics, electrical and programming. My goal is to find a job within this industry after I graduate from college,” Pflipsen explained. “One of the things I am most proud of is earning the rank of Eagle Scout. I first joined scouting in kindergarten. Through the years, it has taught me many things – hard work, dedication, trying new things and being able to step outside of my comfort zone.”

Member News SYDNEY REPPI

Sydney Reppi is the daughter of Ted Reppi, who works for NDSA member Emerson/Micro Motion. The salutatorian of her high school class, Reppi is a student at St. John Fisher College majoring in marketing, where she is on the Dean’s List. She is also a Kuk Sool Won blackbelt and enjoys reading, quilting, baking and participating in sports. Reppi is in her sixth year as an employee of The Apple Farm Stand and is also a part of her family-owned pumpkin patch. “I’ve been providing high quality pumpkins to my community since I was about 5 years old,” she said. “I chose marketing as my field of study because I have always been drawn to commercials and advertisements my whole life. I made my first mock commercial at age 10 and found I had a real talent for combining marketing strategies with humor and other attention-grabbing abilities,” Reppi added. “My goal is to one day market my own company!”

TAYLOR SCHOFIELD

Taylor Schofield is the daughter of Tina Schofield, an employee of NDSA member Farm Credit East. She is now

studying biomedical engineering at Rochester Institute of Technology. Schofield is currently a researcher at the University of Rochester Medical Center for Pediatric Biomedical Research, where she is culturing human cells to attempt to get them to self-renew in the most efficient way possible. Schofield is involved with the RIT Western Equestrian Team and was the 2020-2021 Western captain. She has also participated in the American Angus Association, the New York Junior Beef Producers and the Genesee County 4-H Beef Club Leader and the American Quarter Horse Association. “One of my life actions that I am most proud of is my recent takeover in leadership at the Genesee County 4-H Beef Club in 2020. I wouldn’t be the person I am today if I wasn’t a 4-H member, and I am thankful to be able to give back to the program that taught me many skills,” she said. For more information on the Bruce W. Krupke Memorial Scholarship, visit the Northeast Dairy Suppliers Association website at https://neastda.org/. Editor’s Note: Information on our winners is based on their scholarship applications.

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Member News

Back in the Swing of Things: NDSA Golf Tourney and Clambake Returns

hile we are still not COVID-free as a society, the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association were beyond excited this year to be able to hold the traditional dairy industry events that everyone looks forward to attending. There is a lot to be thankful for, and being able to gather together and see people live and in-person has brought a new and greater appreciation to our events. It was very tough in 2020 to have to cancel the annual clambake and golf tournament. Over the past several years, the Northeast Dairy Suppliers Association has sold an average of 1,000 tickets to the clambake and had about 225 golfers participate in the tournament, which is always held on the second Wednesday in July. Heading into this year’s events, both boards of directors unanimously decided to honor Bruce Krupke and memorialize the events in his name. Thus, this year we were able to hold the first annual Bruce W. Krupke Memorial Golf Tournament and Clambake! 46 • Northeast Dairy Foods Association, Inc.

On the morning of July 14, golfers arrived as the sun was rising at Rogues Roost Golf Course, located just outside the city of Syracuse. The morning got off to a wet start, and conditions were tough, soggy and muddy, but players soldiered on for a great round of golf. Following the tournament, nearly 700 of our friends arrived at The Spinning Wheel Restaurant in N. Syracuse for the clambake and pig roast. The sun finally broke through the clouds, and all of our guests enjoyed great food, horseshoes, good music and, of course, all kinds of delicious food. Some lucky winners took home raffle prizes and silent auction items donated by our members and partners. “We were so glad to finally be able to bring back this day of great events and camaraderie,” said Ozzie Orsillo, executive vice president of the Northeast Dairy Suppliers and Northeast Dairy Foods associations. “Being able to once again meet in person, play some golf and enjoy some delicious food was a great feeling, and we were so glad to be able to host the Bruce W. Krupke Memorial Golf Tournament and Clambake this year.”

Member News

NED Magazine | Fourth Quarter 2021 • 47

Member News

Annual Northeast Dairy Convention

Combining Critical Issues With Networking and Fun on the Shores of Chautauqua Lake

he 2021 Northeast Dairy Convention was held August 18 to 20 at the beautiful Chautauqua Harbor Hotel in Celeron, New York, on the edge of Chautauqua Lake. The three-day event offered attendees new and exciting networking opportunities and informative business sessions to hear more about what is going on in different facets of the dairy industry, along with some down time, relaxation and fun. This was also the first year that the New York State Cheese Manufacturers Association joined with the Northeast Dairy Foods Association, the Northeast Dairy Suppliers Association and the Pennsylvania Association of Milk Dealers to host the annual fall conference, resulting in 180 people in attendance. Wednesday evening opened with a wonderful cocktail hour and dinner, providing a chance for many dairy industry colleagues to socialize after not being able to see one another in-person for such a long time. Chautauqua is the home of the National Comedy Center – and the home to Lucile Ball. Appropriately, the associations invited a comedian to entertain the audience 48 • Northeast Dairy Foods Association, Inc.

after the first night’s dinner. Tony Deyo provided some really good laughs in an hour-long stand-up performance. Deyo is a retired musician who gave up his music career to pursue comedy. He now tours the country with his comedy act and was even a guest on “Late Night with Conan O’Brien.” Thursday was a jam-packed day, as the business sessions started off with guest speaker Ed Gallagher, president of risk management for Dairy Farmers of America. Gallagher provided a very detailed and informative review on how dairy product demand has fared since the onset of the pandemic and also discussed factors that contributed to demand changes. He also gave some very interesting economic insight as to why Class III and IV prices diverged so much and discussed the market outlook over the next few months, as well as how Class III and IV price relationships look in the future. Gallagher’s presentation provided an excellent segue into topics discussed at the business session later in the week. Later that day, attendees were able to explore the area near the resort with an afternoon of relaxing and fun-filled events. The golf tournament was a

popular attraction attended by many, as was the Chautauqua Belle bus/boat tour, which took guests on a cruise around the beautiful lake. Others took part in a self-guided tour of the Comedy Center and the Lucille Ball Museum. There was something for everyone! On Thursday evening, everyone gathered back at the Harbor Hotel for the cocktail reception and a unique speed networking event, which turned out to be a huge success. Similar to “speed dating,” it was an opportunity for suppliers to meet with processors and manufacturers one-on-one for just a few minutes – but that was enough time to make a connection and provide information on themselves, their companies and what service they provide. This will certainly be a recurring event at future conventions based off of feedback the associations received. The final day of the convention brought the business session discussions full circle. Leading off the morning was New York State Sen. Michelle Hinchey, who chairs the Senate Committee on Agriculture. Hinchey provided a recap of what activities the NYS legislature has been involved in over the past year as pertains to the dairy industry, as well

Member News as what other issues are on the horizon. The senator shared her solid understanding of what challenges the industry is currently facing and is fully aware of the deep economic impact the dairy sector has on the economy. Hinchey was proud to announce her support for the Nourish New York Program, which stemmed from the start of the pandemic to alleviate supply chain issues, as well as provide food to those in need. While Henchy represents New York, the information she provided was interesting and relevant to all of our guests, as similar issues are happening in just about every state we serve. The second guest speaker was Jennifer Trodden, the deputy commissioner for the New York State Department of Agriculture and Markets. The deputy commissioner gave an indepth look at how the state agency has responded to the pandemic. She, too, referenced the Nourish New York Program, noting the development and impact that it has had, not only on food producers and the dairy industry but on local communities, as well. Trodden also discussed how New York and the department worked closely with neighboring states and the federal government, in particular the USDA and FDA, in securing funding and resources vital to the continuation of the state’s efficient food supply chain. The information and presentations provided by Gallagher, Hinchey and Trodden were an appropriate introduction to the panel discussion that followed. Gallagher served as moderator for the panel, where Hinchey and Trodden were joined by Laura McCranie, director of fluid milk marketing for Dairy Farmers of America; Randi Mazumdar, senior director of dairy and energy procurement for HP Hood; and Nathan Pistner, plant manager for Great Lakes Cheese and president of the New York State Cheese Manufacturers Association.

This year’s panel discussion topic revolved around how, over the past 10 years, the dairy industry has witnessed a decline in consumption averaging 1% to 2% per year. However, the COVID-19 pandemic has demonstrated that consumers still demand healthy, nutritious dairy products in their homes, as there was an increase in milk, cheese, yogurt and other dairy product sales during this time period. The question on people’s minds, however, was “How does the dairy industry collectively (producers, processors/manufacturers, retailers and others) retain and increase consumption and continue the positive trend that has been seen during 2020?” In addition, the panel discussed what measures need to be taken to prevent supply chain events that the dairy industry experienced early in the pandemic

from happening again. The panel discussion provided a lively and professional debate and dialogue pertaining to these questions and showed how the industry is energized to continue the momentum of market trends and consumption, as well as capitalize on the opportunity of increase in milk and other dairy product sales. The Northeast Dairy Foods Association, The Northeast Dairy Suppliers Association, The New York State Cheese Manufacturers Association and The Pennsylvania Association of Milk Dealers are excited to announce that the 2022 Northeast Dairy Convention will be held Aug. 17-19 at The Landing Hotel at Rivers Casino in Schenectady, New York. CONTINUED ON NEXT PAGE ►

YOUR INGREDIENT SUPPLY SOURCE Let our Ingredient Specialists help you identify the best options for your products: • Enzymes • Cultures • Starter Media • Cheese Salt • Anticaking Agents • Colors & Colorants • Dairy Powders • Peppers, Flavors & Spices • Ingredient Chemicals • Specialty Products

Contact us today for additional information! 1-800-826-8302 • nelsonjameson.com sales@nelsonjameson.com NED Magazine | Fourth Quarter 2021 • 49

Member News

2021 NORTHEAST DAIRY

CONVENTION

50 • Northeast Dairy Foods Association, Inc.

Member News

NED Magazine | Fourth Quarter 2021 • 51

Member News

Member and Industry News BelGioioso Cheese, Inc., has entered into an agreement to acquire Polly-O, the historic cheese brand founded in 1899, for an undisclosed purchase price. The Polly-O brand will expand BelGioioso’s footprint in the dairy category in addition to its existing Casaro brand. Last year, Polly-O achieved net sales of roughly $177 million. Chobani announced a limited-edition Complete Shake featuring Peloton instructor and fitness star Cody Rigsby. The product has 25 grams of high-quality protein with all the essential amino acids needed for building muscle – making it a functional and delicious pre- and post-workout snack for everyday athletes and fitness professionals. In other Chobani news, the company donated 300,000 products to Hurricane Ida victims and Afghan refugees. The company delivered food to Mamaroneck, New York, which was hit hard by Hurricane Ida. Other trucks traveled to New York City, Louisiana and New Jersey. Approximately 200,000 food products went to hurricane victims, and another 100,000 went to Afghan evacuees in temporary housing, as well as the U.S. servicemen and women supporting them. Mauricio Graber, CEO of Chr. Hansen, reported 7% organic growth for 2020-2021 in a recent statement. “Our performance of 7% organic growth and our EBIT margin b.s.i. of 27.7% both ended at the upper end of our initial outlook range for the full year,” he said. “Free cash flow before acquisitions and special items ended at EUR 196 million and was higher than the full-year outlook, in part, due to a positive 52 • Northeast Dairy Foods Association, Inc.

impact from timing of payables. Graber noted that it was a year of transition for Chr. Hansen, as it executed changes to its portfolio, including the divestment of Natural Colors and the acquisitions of HSO Health Care, UAS Labs and Jennewein. Positives included the all-time high product launch activity in dairy, animal health, bioprotection and fermented plant bases, as well as a new partnership with UPL in plant health. Bel Brands USA and Dairy Farmers of America have teamed up to launch a sustainable milk cooling program designed to reduce greenhouse gas emissions. The companies intend to implement and measure sustainable cooling practices in an effort to cut energy usage and reduce the carbon footprint on dairy farms. A 12-month pilot program will see the companies support the adoption of the energy-efficient cooling methods – such as natural well water cooling – by a dairy farm in Iowa that supplies milk to Bel Brands. Ultimately, the goal is to implement these new cooling methods on other U.S. dairy farms to ensure sustainability throughout the supply chain. Ecolab, Inc., the global leader in water, hygiene and infection prevention solutions and services, has expanded its wipes manufacturing capabilities with the acquisition of National Wiper Alliance, a 500,000-square-foot wipes manufacturing facility located outside of Asheville, North Carolina. For decades, Ecolab has been a leader in developing cleaning and disinfecting solutions for customers in more than 40 industries. The acquisition of National Wiper Alliance is a critical step in Ecolab’s continued commitment to serve as a leading

Member News

wipes partner for its customers, according to Ryan Rensvold, vice president and general manager of Ecolab’s global wipes business. The Farm Credit Northeast Ag Enhancement Program, a joint effort of Farm Credit East, Yankee Farm Credit and CoBank, recently provided $71,500 in grant funding to 15 organizations to assist efforts to support young and beginning farmer initiatives, encourage youth leadership development, promote diversity and inclusion and advance Northeast agriculture, forestry and commercial fishing. After nearly two years, Great Lakes Cheese has found a new location in Western New York. The Ohio-based company, which owns Empire Cheese in Cuba, New York, plans to relocate and build a new 486,000-square-foot facility in Franklinville, New York. After five long winters away, Zero Visibility, one of Perry’s Ice Cream Co., Inc.’s most requested seasonal flavors, is back to honor the hearty spirit of the Western New Yorkers who brave the long winter months. The coconut rum ice cream filled with shredded coconut pieces was originally introduced in 1997 to commemorate the 20th anniversary of the Blizzard of ’77, the iconic snowstorm that left Perry’s hometown of Buffalo, New York, and surrounding areas, at a standstill for five days. The flavor will be available through January 2022 at retailers throughout New York and Western Pennsylvania and then will return to the vault until 2026! RELCO, a Koch Separation Solutions company, announced the establishment of a new regional office in Stratford, Wisconsin, positioning the company to support its existing customer base in the Wisconsin area. As a well-established engineering and manufacturing company, RELCO has been providing process technologies to cheese and dairy plants across the globe since 1982 with a concentration on dryers, evaporators and powder handling equipment. The company’s primary objective of its new location is better service and support for existing customers, as well as a continued focus on

new product solutions and technologies for the dairy industry, according to President Mark Litchfield. Saputo Dairy Foods USA, LLC, announced the acquisition of the Carolina Aseptic and Carolina Dairy businesses formerly operated by AmeriQual Group Holdings, LLC, for $118 million. The businesses will join Saputo’s Dairy Division in the U.S. and operate out of two facilities in North Carolina that employ approximately 230 people. Carolina Aseptic develops, manufactures, packages and distributes aseptic shelf-stable food products and beverages, while Carolina Dairy manufactures, packages and distributes refrigerated yogurt in spouted pouches. Upstate Niagara Cooperative recently completed the move of its new headquarters in Lancaster, New York. The company bought a 119-acre property for $4.75 million from Ecology & Environment, and about 200 of Upstate Niagara’s employees work at that location. The cooperative, which is made up of nearly 300 family-owned farms, plans to sell its former offices in Cheektowaga, New York. Vermont Creamery announced its B Corp. recertification as a core component of holding itself accountable to its vision and measuring its progress and key to its success as a growing values-led company. This international certification demonstrates Vermont Creamery’s commitment to its mission and measures how the company uses business as a force for good. Originally certified in 2014, the certification has become a key tool for the business in gauging how it is measuring up. Heinz announced that it is continuing its mission to remove plastic from supermarket shelves with the United Kingdom rollout of Heinz Eco-Friendly Sleeve Multipack, a new, convenient, super skinny paperboard sleeve for all its multipack canned products. Made with WestRock’s PEFC-certified CarrierKote paperboard, the Heinz Eco-Friendly Sleeve is recyclable and comes from sustainably managed forests. The innovative wrap design uses no glue, as well as 50% less material than a fully enclosed wraparound box and 10% less than a tradition paperboard sleeve design. CONTINUED ON NEXT PAGE ►

NED Magazine | Fourth Quarter 2021 • 53

Member News New York State Department of Agriculture and Markets Commissioner Richard A. Ball announced the winners of the 2021 Dairy Products Competition in celebration of Dairy Day at the Great New York State Fair, held in Syracuse, New York, in August. Upstate Niagara Cooperative earned the most medals overall with a total of 19. The cooperative received the gold in Flavored Milk, Dip, Buttermilk, Mozzarella, Ricotta and Sour Cream categories. In addition, Upstate Niagara took home the silver in the Full Fat Cottage Cheese category and the Award of Excellence in the Lowfat and Nonfat Cottage Cheese categories. Great Lakes Cheese won gold and silver for its Cheddar, Aged Cheddar and Super Aged Cheddar, earning a total of six medals. Stewart’s Shops earned silver for the state’s top scoring milk. HP Hood, LLC, won gold and silver in the Full Fat and Low-Fat Cottage Cheese categories, gold and silver in the Nonfat Cottage Cheese category, silver in the Sour Cream category and also earned the Award of Excellence in the Full Fat Cottage Cheese and Plain Yogurt categories. The Lactalis American Group took silver in the Low Moisture Mozzarella category, as well as the Award of Excellence in the Low Moisture Mozzarella category the Provolone category.

Chobani won the award for New York Dairy of Distinction/ Business of Distinction At the World Dairy Expo, Stewart’s Shops once again showed it has some of the best dairy products in North America. The judging is based on flavor, body and texture, melting quality, appearance and color. This year’s competition received over 1,400 submissions from dairy producers across North America. Stewart’s officially has the best chocolate ice cream in North America, as it walked away the winner in the Regular Chocolate Ice Cream category. Stewart’s Mango Dragon Fruit, which debuted as a seasonal flavor in 2020 and became a customer favorite, was named The Best Sherbet in Show in the Open Class Sherbet category. The company took second place in the Open Class Pasteurized Milk category. And, three third place finishes were in the Frozen Dessert Division – Mint Cookie Crumble in the Mint Ice Cream category, Peanut Butter Pandemonium in the Ice Cream with Peanut Butter category and Milk Chocolate Gelato in the Gelato category. All of Stewart’s dairy products are made fresh at its Greenfield, New York, plant with milk picked up from over 20 local family dairy farms.

NORTHEAST DAIRY SUPPLIERS ASSOCIATION BUYERS GUIDE IS NOW LIVE!

buyersguide.neastda.org

Showcasing all NDSA member companies by category, description and SEO-friendly search terms. This guide assists and encourages members doing business with members. Find new products and services, industry events, deals and more! Check it out today and share it with specifiers and purchasing agents at your company. For more information about the NDSA Buyers Guide, contact Northeast Dairy Media 315-445-2347.

54 • Northeast Dairy Foods Association, Inc.

Member News

NEW MEMBERS

The following new member recently joined Northeast Dairy Foods Association, Inc., or the The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available from both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Leanne Ziemba at 315-452-MILK (6455) or lz@nedairyfoods.org.

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131 Haverhill St. Freedom, NH 03836 978-609-2641 Michael Panagiotakos Vice President mpangiotakos@freedomsalesco.com

52 Bent Tree Dr. East Longmeadow, MA 01028 413-847-0364 Claudia Penna NE Sales Manager cpenna@swanpackaginginc.com

1741 Tomlinson Road Philadelphia, PA 19116 574-327-9352 Mike Petrie Vice President Sales & Marketing mike.petrie@zentis.com

Catch up on the previous issues of Northeast Dairy magazine. Visit issuu.com/nedmagazine NED Magazine | Fourth Quarter 2021 • 55

Leanne’s Kitchen

Comfort Food Made with Delicious Dairy

Apple Crisp Cheesecake Pie From the Kitchen of Leanne Ziemba

INGREDIENTS APPLE PIE FILLING:

• 2 ¾ cups apples diced in ½ ich cubes (3 medium apples) • 1 Tablespoon melted butter • ¼ cup light brown sugar • 1 teaspoons cinnamon • ¼ teaspoon nutmeg • 1 Tablespoon fresh lemon juice • 1 ½ Tablespoon corn starch • ½ cup of water

GRAHAM CRACKER CRUST: • • • •

2 ¼ cups graham cracker crumbs ¼ cup light brown sugar 1–2 teaspoons cinnamon (to taste) 6 Tablespoons unsalted butter-melted and slightly cooled

CRISP TOPPING: • • • • • •

½ cup all-purpose flour ½ cup light brown sugar ½ cup quick-cooking oats 1 teaspoon cinnamon ¼ teaspoon nutmeg ¼ cup unsalted butter- melted

CHEESECAKE FILLING: • • • • •

12 oz. cream cheese ½ cup of sugar 1 ½ teaspoons vanilla 2 Tablespoons flour 1 large egg

FOR SERVING:

• Salted caramel sauce, whipped cream, or vanilla ice cream 56 • Northeast Dairy Foods Association, Inc.

INSTRUCTIONS TO MAKE THE APPLE PIE FILLING: 1. Peel the apples and diced into about ½ inches cubes. In a large saucepan, melt 1 Tablespoon butter, add chopped apples, brown sugar, fresh lemon juice, corn starch, water and spices. 2. Stir everything well, cover with a lid and cook over medium heat until the apples are slightly softened and the sauce is thickened. It will take about 10-15 minutes; just don’t forget to stir occasionally, or the sauce will stick at the bottom. Set aside and cool before using.

GRAHAM CRACKER CRUST: 1. Preheat the oven to 350 F. 2. In a bowl stir together graham cracker crumbs, cinnamon and brown sugar. Add melted butter and stir until everything is evenly moistened. Press the mixture in the bottom and up the sides of a 9-inch pie dish. Bake 8 minutes, then set aside to cool.

CRISP TOPPING: 1. Stir together flour, oats, brown sugar and cinnamon. Add melted butter and whisk with a fork to make the crumbs; set aside.

CHEESECAKE FILLING: 1. Beat softened cream cheese with sugar, vanilla and flour. Add slightly beaten egg and mix just to combine. Spread the mixture in prebaked crust. 2. Next spread the apples over the cheesecake layer. 3. Sprinkle with the crumb topping and bake 35-40 minutes. If it starts browning too much, tent the top with aluminum foil. 4. Cool completely before serving. 5. Serve with a drizzle of salted caramel or vanilla ice cream or whipped cream.

Many of our members may know Leanne Ziemba as the business operations manager for the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Food Suppliers, Inc., in our N. Syracuse, New York, office. But we’ve discovered she also is queen of the kitchen, as she has some delicious recipes that include fresh, wholesome dairy products.

Member News

New High-Speed Electric Vehicle Charging Stations Coming to Stewart’s Shops In NYS Capital Region and Adirondacks

ew York State recently announced that construction has begun on five new highspeed electric vehicle charging stations that will be open by the end of 2021 at Stewart’s Shops in the Capital and Adirondacks regions. The New York Power Authority. which is managing the installation of New York State’s EVolveNY fast charging network, will complete the initial location, 13 miles southeast of Albany in Schodack, New York, before the end of the year. The fast chargers can be used by any make or model of electric vehicle and can fully charge an EV in as little as 20 minutes. The additional sites will help New York State advance its nation-leading clean energy goals, including decarbonizing the transportation sector and reducing the overall greenhouse gas emissions 85% by 2050. As more and more people are opting to drive emission-free electric vehicles to help reduce greenhouse gas pollution, the state is committed to working with private partners needed to jointly support this transition of the transportation sector. Working with Stewart’s Shops and other private entities to strategically deploy charging infrastructure across the state will benefit all from an expanded network that will make it easier and more affordable to move to greener power and improve air quality in communities throughout New York. The five fast-charging stations will offer a total of 20 chargers. The first location in Schodack will be the tenth installation in NYPA’s EVolve NY network. NYPA will construct, own and operate the hubs in coordination with Stewart’s site hosts. “NYPA’s EVolve NY network is expanding across New York State and making it easier and more convenient for drivers to power their vehicles with clean energy sources,” said Gil

C. Quiniones, NYPA president and CEO. “Partnering with Stewart’s and other hosts that operate multiple sites will accelerate our efforts to promote emissions-free transportation and advance the state’s clean energy goals.” NDFA member Stewart’s Shops, a family owned and operated chain of convenience stores and gas stations in New York and Vermont, started as an ice cream shop in 1945 and has grown to 345 locations. As part of NYPA’s EVolve NY clean energy initiative, additional charging stations will open in the fall at Stewart’s Shops locations throughout New York state in Moreau, Latham, Keene and Clifton Park. An additional four charging stations are planned for 2022. The new charging stations are the latest steps Stewart’s Shops are taking to become more sustainable. Stewart’s Shops currently has three Tesla supercharging stations throughout the state with plans to expand the program with four more by the end of 2021. The chain uses solar energy at offsite locations in Halfmoon and Castle Creek, New York, and its manufacturing plant has 2,400 individual solar panels on the rooftop that offset 75% of the power at 50 locations. “By partnering with EVolve NY, we are proud to offer our customers more options for ‘filling’ up their tanks. The 20 EVolve NY Chargers will grow our fast charging network to over 80 units. Stewart’s Shops is known for a quick in and out and these fast chargers will provide the convenience our customers know and expect. As an energy provider for today and into the future, we have the ability to fuel any vehicle and grow our EV network at strategic locations,” said Gary Dake, president of Stewart’s Shops. “The partnership with Evolve NY is just one of the ways Stewart’s Shops is attaining a more sustainable future.”

NED Magazine | Fourth Quarter 2021 • 57

BusinessTrends

Combatting Cybersecurity Risks Don’t Leave Your Digital Door Unlocked BY PAUL BANUSKI

ne question I love to ask employers is, “What is your greatest organizational asset?” Almost invariably, the answer they give me is, “Our people.” And it’s true. People represent one of the greatest assets most businesses have. Then, I flip the question around. “And what’s your greatest liability as an employer?” And, amazingly, the answer is usually the same. “Our people.” Between payroll, benefits and administration, employees represent an enormous portion of company resources. And that’s before you consider turnover, absenteeism, disciplinary issues, insurance claims and unemployment costs. Then, there are the cyber security risks… Organizations large and small have been the target of various hacks, ransomware, viruses and other forms of cyber attacks in the past few years. These attacks can cost millions of dollars to fix. According to international insurer Allianz, cyber attacks have been on the rise every year since 2016, and the claims paid in that time total nearly $900 million. While there are individuals and networks of savvy criminals ultimately responsible, more often than not, they’re able to find their way into a company’s network because an employee has left the digital door unlocked. Employees don’t mean to do this, of course. But, sometimes they make a mistake and forget to follow security procedures and protocols (assuming, of course, an employer has those safeguards in place). And some cyber criminals aren’t looking 58 • Northeast Dairy Foods Association, Inc.

for a seven-figure payout; they’re comfortable targeting smaller organizations for smaller amounts of money. For example, in 2019 the Onondaga County (NY) District Attorney’s office warned of a payroll scam targeting employers using fraudulent email addresses to have direct deposit information changed from an employee to an account set up by the scammer or from hackers using an employee’s account to redirect the paycheck. The district attorney said in a news release, “These requests may look valid, since they often come from the employee’s actual email account which has been compromised, or a spoof email that is designed to appear similar to the user’s email handle (for example, using the number “1” in place of a lowercase “L”). Alternatively, the request may use the appropriate internal organizational forms to change banking information lending the appearance of credibility.” But sometimes the trick isn’t even that devious. It’s not necessarily a nefarious genius with a high-tech set-up trying to hack your employees or your company. It’s just that too many people volunteer important information on social media and make it easy for people to commit crimes of opportunity. Think about it. If you have online accounts to manage your banking, credit cards or payroll, consider the password security questions for those accounts. Often the questions that must be answered when you reset a password on a website are about first cars, names of favorite teachers or pets. Take a quick glance at your Facebook feed and see how many people just in your own network give that kind of information away to the world,

BusinessTrends either by having a public account or by voluntarily sharing that type of information in various polls There are two primary actions that an organization can take to reduce its risk of being caught in scams like these.

ESTABLISH PROCEDURES

Your organization should have procedures in place for managing transactions like changing direct deposit information, wire transfers and even address changes. If you aren’t using an employee self-service payroll platform, you can require employees to make requests to change direct deposit information in writing using an internal form. Verify all requests with the employee before making any changes to someone’s account. Any deviation from established procedure is at least a warning to be vigilant for a scam.

EDUCATE YOUR ENTIRE TEAM ON SECURE COMMUNICATIONS

It’s not enough for the HR manager or payroll administrator to use best practices if employees are susceptible to having their email or a payroll self-service account hacked. Require employees to use strong passwords when setting up accounts and to change those passwords on a regular basis. Experian, the credit bureau, offers tips for generating strong passwords. Make sure your employees know the procedures for making a change. One technique that all employers should be using when it comes to their payroll services is to make sure they offer two-factor authentication before someone can log-in to their accounts. Two-factor authentication requires not only a user ID and password but also the use of a verification code that is sent to the person’s cell phone as a text message. Sometimes steps like this can appear cumbersome, but they are well worth the extra few moments to protect your organization and your people. Paul Banuski is a human resource consultant for HR One, a full-service payroll and human resource consulting firm. For more information, call the company’s Helpline at 1-800-457-8829. This article was used with permission from HR One.

(Source: Allianz: Companies need to strengthen cyber controls to counter ransomware pandemic https://www.agcs.allianz.com/news-andinsights/news/cyber-risk-trends-2021-press.html October 13, 2021)

CREATING AN EFFECTIVE PASSWORD

We all know it can be mind-boggling to create and remember every password to each account we have, but it is critical to keeping your information safe. However, taking the time to do so can be the difference between keeping your information secure or making it all too easy for someone to access your information. According to Experian, over half of data breaches involved weak, stolen or default passwords. Here are some general tips for creating a stronger password: • Use longer passwords: The longer the password, the harder it takes for hackers to crack the code. According to CSO, which provides news, analysis and research on security and risk management, a 10-character password takes years to figure out, whereas an 8-character password can take only minutes. • Include special characters: Some hackers search for passwords using common words, so mix up your passwords with special characters (e.g., $ instead of “S”), a random capital letter or symbol in your password (e.g., DrinKDaiRy! instead of drinkdairy). • Use a two-step authentication process if available. Yes, it takes a few minutes to set up, but it will be completely worth it if it avoids you being hacked. Not only will you set up a password, but you’ll also have to provide your fingerprint or access a code texted to your phone in order to sign into your accounts. This adds another layer of protection from hackers. • Don’t use the same password for every account. Again, passwords can be hard to remember, but do your best to use different passwords for every account. Try to create passwords that are unrelated, too, so that one hacked account doesn’t give a clue to your other accounts. And, never create a document on your computer listing all of your passwords. Keep that separate from your electronic devices. • Don’t include information in your password that could easily be figured out elsewhere. For example, don’t use your house number or digits from your phone number in a password, as these are too easy to figure out. Also, avoid passwords like “12345678” or “password.” That’s practically inviting someone to hack into your account. • Finally, don’t fall for those surveys on social media. Surveys, particularly on Facebook, that asks you to answer ten or more questions like “What’s your pet’s name?” or “What’s was your first car?” These might seem like fun ways to interact with friends, but they are also giving out specific personal information that a hacker might find very useful.

NED Magazine | Fourth Quarter 2021 • 59

ADVERTISERS’ INDEX Agri-Mark �� 6 Agri-Services �� 15 Altium Packaging �� 13 Atlas Automation �� 35 Comairco �� 17 Dairy Farmers of America �� 39 Farm Credit East �� 31 H.S. Crocker �� 27 HP Hood �� 29 Klockner Pentaplast of America �� BC Nelson-Jameson, Inc �� 49 Relco �� 45 The Probst Group �� 35 Tremcar �� 45 Westrock �� IFC

Join the Dairy Industry Associations A full service trade association representing dairy processors, manufacturers and distributors since 1928.

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E D I T I O N 20 16

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PROFESSIONAL COST-SAVING PROGRAMS Dedicated Industry-Specialized Insurance Programs Employee Benefits, Including 401(k) Retirement Program Energy Supply and Consulting Services

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COMMUNICATIONS AND PUBLIC RELATIONS Quarterly copy of Northeast Dairy Magazine Direct Customer Advertising Opportunities Industry Scholarship Program Membership Directory with Key Contacts in the Dairy Industry Digital Buyers Guide Weekly Diary Newsletter

ADVOCACY An association represents your interests before your government leaders, industry and business community. If your business/industry faces major threats or needs support, our association is right there on the front line fighting for you.

NETWORKING Association events, meetings and member directories make networking a reality for you and your peers. Thisis the one advantage many view as the most important reason to join!

Sustainable packaging solutions At kp, the sustainable protection of everyday needs is very important to us. Our aim is to ensure you get the most sustainable food packaging solutions that protect your food products, extend shelf-life, reduce food waste and are recyclable. We operate across a vast range of fresh food categories, supplying thermoformed trays, rigid films for form, fill and seal applications as well as flexible films to protect your products. Find out how kp can create a food packaging solution for you.

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Northeast Dairy Magazine | Q4 2021

Articles inside

Member & Industry News

2021 Convention Photo Collage

Back in the Swing of Things NDSA Golf/Clambake Returns

NDSA Awards $14,000 in Scholarships

Annual Dairy Convention